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Fed to embrace global banking rules: report

Reuters [1]
December 19, 2011

The US Federal Reserve is expected to embrace a new global framework that requires giant financial institutions to hold extra capital, The Wall Street Journal reported Monday.

Citing unnamed people familiar with the situation, the newspaper said the Fed’s decision to accept the rules laid out by regulators in Basel, Switzerland, could come before Christmas.

It is a defeat for big US banks that argued the guidelines needn’t be so strict, the report said. They contended the Basel approach could prompt them to reduce lending and hurt the economy.

Full article here [1]