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Fed Proposes New Rule Capping Business Between Banks | Tony Seruga
Mar
06

Fed Proposes New Rule Capping Business Between Banks

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One of the problems with big Wall Street banks in 2008 was that they had too many of their financial eggs in one basket.

When Lehman Brothers and the American International Group started to collapse, the banks that did huge amounts of business with those two firms faced the prospect of crippling losses. Speculation raged about how big those losses might be and how widely they might spread, stoking a panic that froze the global financial system.

The Federal Reserve on Friday proposed a new rule that, in a relatively simple manner, sets out to lessen the chance of such contagion happening again…

Fed Proposes New Rule Capping Business Between Banks

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