{"id":5600,"date":"2014-02-20T00:00:00","date_gmt":"2014-02-20T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/02\/federal_reserve_passes_new_rul"},"modified":"2022-05-05T12:05:53","modified_gmt":"2022-05-05T17:05:53","slug":"federal-reserve-passes-new-rul","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/federal-reserve-passes-new-rul\/","title":{"rendered":"Federal Reserve Passes New Rules for Deutsche Bank, UBS, and Other Foreign Banks"},"content":{"rendered":"\n

This week, the Federal Reserve passed new rules that could make large foreign banks increase their capital by billions of dollars. Per the regulations, Credit Suisse Group AG (CS), Deutsche Bank AG (DB), UBS AG (UBS)<\/a>, and Barclays PLC (BCS), and other lenders based overseas that have units in the US will have to meet requirements having to do with debt levels and capital, as well as satisfy yearly \u201cstress tests.\u201d <\/p>\n

With the new rules, 20 banks will now be required to set up US holding companies. Foreign banks with more than $50 billion in US assets will need to keep up more loss-absorbing capital than what is required by other nations. This could compel them to raise more debt or equity for their units in this country. For example, reports the Wall Street Journal<\/em>, Citigroup (C) analysts say that Deutsche Bank\u2019s unit that has been running with essentially zero capital. Under the new rules, however, it will have to deal with a shortfall of about $7 billion. <\/p>\n

Also, foreign banks with assets greater than $10 billion will have to take the Fed\u2019s yearly stress-test process, which would necessitate stringent review of capital levels and assets. Foreign banks that fail to pass the test could find their business activities in the US restricted. Banks with assets of at least $50 billion would have to satisfy enhanced leveraged ratios (By January 2018), risk-management, and liquidity requirements. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

This week, the Federal Reserve passed new rules that could make large foreign banks increase their capital by billions of dollars. Per the regulations, Credit Suisse Group AG (CS), Deutsche Bank AG (DB), UBS AG (UBS), and Barclays PLC (BCS), and other lenders based overseas that have units in the US will have to meet […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3740],"tags":[2638],"class_list":["post-5600","post","type-post","status-publish","format-standard","hentry","category-miscellaneous","tag-federal-reserve"],"yoast_head":"\nFederal Reserve Passes New Rules for Deutsche Bank, UBS, and Other Foreign Banks — Investor Lawyers Blog — February 20, 2014<\/title>\n<meta name=\"description\" content=\"This week, the Federal Reserve passed new rules that could make large foreign banks increase their capital by billions of dollars. 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Per the regulations, — February 20, 2014\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards & Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Federal Reserve Passes New Rules for Deutsche Bank, UBS, and Other Foreign Banks — Investor Lawyers Blog — February 20, 2014","description":"This week, the Federal Reserve passed new rules that could make large foreign banks increase their capital by billions of dollars. 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