© Reuters. FILE PHOTO: The Empire State Building and Manhattan horizon are visualized from the Summit at One Vanderbilt observatory in Manhattan in New York City, U.S., April 14,2023 REUTERS/Mike Segar/File Photo
By Pete Schroeder
WASHINGTON (Reuters) – U.S. regulators are set to propose a guideline that might considerably raise capital requirements for bigger banks, requiring them to cut expenses and maintain profits in an effort to cushion versus capacity losses that might damage consumers and financiers.
The proposition, to be revealed lateron on Thursday and voted on by the Federal Deposit Insurance Corporation and the Federal Reserve, marks the veryfirst in an comprehensive effort to tightenup bank oversight, especially in the wake of spring chaos that saw 3 big monetary companies stopworking.
The guideline, which would execute a 2017 contract by international regulators, intends to overhaul how banks gauge their riskiness, and in turn how much cash they should keep on hand.
Industry challengers have currently started to slam the strategy as banks lookfor to soften, hold-up, or otherwise thwart the federalgovernment’s long-planned effort. They argue the increases are unjustified and financially damaging