FINANCIAL TIMES: …At a board meeting in Washington, Fed officials led by chairman Ben Bernanke agreed to force banks to abide by the new, tougher international Basel III standards from January.
But Daniel Tarullo, the Fed governor in charge of regulation, outlined further plans to force the largest banks to sacrifice profits in the name of safety.
They include proposals to force banks to hold a higher level of equity against total assets and capital charges targeted at banks most exposed to short-term wholesale funding. Officials have previously mentioned the ideas in speeches but not as firm policy goals… (more)
EDITOR: This is rare good news when it comes to bank regulation. Note that it is the Federal Bank, not the Treasury Department which seems to be in the lap of the banking interests.
