Federal Reserve drafts tough capital rules for non-U.S. bank

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Federal Reserve drafts tough capital rules for non-U.S. banks
from MarketWatch.com - MarketPulse
WASHINGTON (MarketWatch) -The Federal Reserve on Friday afternoon unanimously voted to propose subjecting foreign banks with large U.S. operations to tougher capital and liquidity rules. These firms, like Deutsche Bank and Barclays , would be subject to stress tests and the same capital and leverage standards applicable to U.S. banks. The proposal would apply to 107 foreign banks with operations in the U.S. that have total global assets of $50 billion or greater, though tougher rules would be imposed on 23 institutions that have U.S. assets of $50 billion or more. The measure, if approved, would be effective July 1, 2015, as part of an effort to give designated banks enough time to implement the requirements. The expected proposal comes after Federal Reserve Governor Daniel Tarullo last month spoke of the need for tougher rules on foreign firms. (Updates to reflect vote)