U.S. agencies delay start of capital rules for banks
WASHINGTON (AP) - The government will give U.S. banks more time to increase their capital cushions against losses, delaying the requirement after financial industry criticized the start date.
The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency say they will not make the requirement take effect on Jan. 1. They did not announce a new date. Instead, they said they will work on finalizing the rules.
Regulators had proposed the Jan. 1 date in June. Afterward, financial industry officials complained that would not leave them enough time to comply.
Stricter capital requirements were mandated as part of the 2010 financial overhaul. All U.S. banks are expected to hold capital worth at least 7 percent of their assets, up from a current minimum of 2 percent.
The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency say they will not make the requirement take effect on Jan. 1. They did not announce a new date. Instead, they said they will work on finalizing the rules.
Regulators had proposed the Jan. 1 date in June. Afterward, financial industry officials complained that would not leave them enough time to comply.
Stricter capital requirements were mandated as part of the 2010 financial overhaul. All U.S. banks are expected to hold capital worth at least 7 percent of their assets, up from a current minimum of 2 percent.
If anything, the capital rules will be loosened up not tightened up. It will be exactly what the financial sector wants and thats that. They know no matter how bad they screw up, there are 300 million fools ready to transfer even more wealth up to the rich in the form of bailouts and bonuses. They are working with the best lawmakers money can buy.
 @T_BONE_WALKER We have the best government money can buy.
Bring back the Glass Steagall act and the banks won't be able to do the crap that got us in the mess were in.