Posted at: 07/02/2013 10:56 AM
By: MARTIN CRUTSINGER, AP Economics Writer
WASHINGTON (AP) - The Federal Reserve approved higher requirements for the amount of capital reserves banks must hold to cushion against unexpected losses. The change is aimed at preventing a repeat of the 2008 financial crisis.
The Fed voted 7-0 to approve the 792-pages rule, which was mandated by the 2010 financial overhaul law. It must also be approved by the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency.
Banks have lobbied against the changes, saying they could hamper their ability to lend. But experts say most big banks have already increased their capital reserves.
Fed Chairman Ben Bernanke said that the rule would require banks to hold more and higher quality capital and make banks better able to withstand financial stress.
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