News Summary: Stricter measure set for 8 big banks

AP News
Posted: Jul 09, 2013 6:40 PM

STRICTER MEASURE: Federal regulators took a step toward making the largest U.S. banks meet a stricter measure of strength to reduce the threat they pose to the financial system.

REGULATORS' PROPOSAL: The proposal calls for those banks to increase their minimum ratio of equity to loans and other assets to 5 percent from 3 percent. The banks' deposit-holding subsidiaries would have to increase that ratio to 6 percent.

EIGHT MEGABANKS: The rule would take effect in 2018. It would apply to banks deemed so big and interconnected that each could threaten the global financial system: Goldman Sachs, Citigroup, Bank of America, JPMorgan Chase, Wells Fargo, Morgan Stanley, Bank of New York Mellon and State Street.