Yellen says Fed mulling stricter rules for Wall Street
Published on Apr 16, 2014 4:30 AM
ATLANTA (REUTERS) - The US Federal Reserve is considering further steps to force big banks to hold more capital, and sees a case for other stability-enhancing measures for more shadowy areas of Wall Street as well, Fed Chair Janet Yellen said on Tuesday.
The Fed has been pushing banks to strengthen their balance sheets since the 2007-2009 financial crisis, and last week joined other regulators in requiring the eight largest US banks to increase their capital levels by some US$68 billion (S$85 billion) in total.
"There might be room for stronger capital and liquidity standards for large banks than have been adopted so far," Ms Yellen said in a pre-recorded video for a financial markets conference hosted by the Atlanta Federal Reserve Bank.
She cited a 2010 study by the Basel Committee, an international standard-setting body, that suggested tighter standards would provide economic benefits.
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