Aug. 10 (Bloomberg) — Federal Reserve officials are drafting rules for the
biggest U.S. banks that won’t be more stringent than international capital
standards agreed to in Basel, Switzerland, according to a person familiar with
the discussions.
Federal Reserve Governor Daniel Tarullo cited a “goal of
congruence” between the Basel standards and the Fed’s work on rules under the
Dodd-Frank Act, which overhauls banking regulation, in a June 3 speech. The
central bank hasn’t veered from that, according to the person, who declined to
be identified because the rules are still being drafted.
The Basel Committee on Banking Supervision, which includes
regulators from the U.S. and Europe, set an additional capital buffer standard
for the largest international banks in June that will range from 1 percentage
point to 2.5 percentage points of risk-weighted assets. That comes on top of a
requirement of 7 percent of common equity for all banks.
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