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U.S. Regulators Set To Detail Bank Cap Size

U.S. regulators are aiming to recommend higher capital standards for financial firms in late July.

U.S. regulators are aiming to recommend higher capital standards for financial firms in late July, The Wall Street Journal reports. The Federal Reserve, the U.S. Department of Treasury and many international policy makers have not yet decided on the amount of capital necessary for banks and other firms.

Fed Governor Daniel Tarullo proposed that institutions should hold capital ranging from 8.4-14% of assets. A capital range may possibly be set at 1.5% for big banks with assets over $500 billion that meet the surcharge with common equity and nearly 3% for those that use hybrid debt instruments that may convert to equity in a crisis.

Click here for the story from The Wall Street Journal.

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