US Banks May Face Two Ratios as FDIC Sets Capital Vote | White & Case LLP International Law Firm, Global Law Practice
US Banks May Face Two Ratios as FDIC Sets Capital Vote

US Banks May Face Two Ratios as FDIC Sets Capital Vote

The Federal Deposit Insurance Corporation joined the Federal Reserve and Comptroller of the Currency in adopting final Basel III risk capital and leverage rules. The three agencies also proposed an enhanced leverage requirement for a bank holding company, and any bank subsidiary, with assets exceeding $700 billion or $10 trillion in managed assets.

"As the economy starts to move, it’ll bite," said Ernie Patrikis, a former Federal Reserve Bank of New York general counsel and now partner at White & Case LLP. A higher floor will "make the US banks a little less competitive, a little less profitable," Patrikis said.