Fundamentals, page-71

I like that Sijoe. I need someone to shut my mouth because If I face more challenging posts that will boost my self learning skills.

US banks are the most leverage banks but they couldn't make enough profits to withstand any crisis comming from off-shore markets.

The Fed is still needed babysitting their 6 major banks because the banks have been relying on the Fed since GFC.

So what is credit risk that the Fed is worrying about. I need to find out more.


Mon Dec 21, 2015 | 3:33 PM EST
Fed proposes higher big bank capital thresholds when credit risk rises

Bollards help secure the entrance to the Federal Reserve in Washington, December 16, 2015.
REUTERS/KEVIN LAMARQUE

(Reuters) - The Federal Reserve proposed on Monday that big banks would have to hold additional capital if regulators determine that U.S. credit risk has risen to above-normal levels and threatens the financial system.

The proposal for what the Fed is calling a "countercyclical capital buffer" is designed to fortify banks against potential losses and "help moderate fluctuations in the supply of credit," the U.S. central bank said in a press release.

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The proposal, which is open for comment until Feb. 19, is the latest response by regulators to the 2008 financial crisis that battered the economy.



(Reporting by David Henry; Editing by Chizu Nomiyama)