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U.S. Fed sets vote on tough standards for foreign, domestic banks

Tue, 11th Feb 2014 16:21

WASHINGTON, Feb 11 (Reuters) - The Federal Reserve plans tovote next week on new standards for banks operating in theUnited States, including a proposal for foreign banks that hasbeen heavily criticized by their home regulators.

The Fed's board on Feb. 18 will consider finalizing rulesthat require foreign banks with big U.S. operations, such asDeutsche Bank and Barclays, to group alltheir subsidiaries under a single holding company, according toa notice on the agency's website.

Those intermediate holding companies would have to meet thesame capital standards as U.S. banks.

Some foreign bank regulators complained that the 2012proposal would disadvantage foreign banks and could cause otherjurisdictions to retaliate with tougher standards for somefirms.

The board also will take up a 2011 proposal for tougherstandards for domestic banks. That includes limits on banks'credit exposure to any single counterparty, part of an effort toreduce the risks posed by highly interconnected banks.

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