Yellen says big banks may need more capital - MarketWatch

Yellen says big banks may need more capital - MarketWatch

The Federal Reserve is actively considering new rules to address risks in short-term wholesale funding markets, Federal Reserve Chairwoman Janet Yellen said Tuesday at an Atlanta Fed banking conference. One rule, likely only to be applied to large and complex banks, would require firms to hold larger amounts of capital, stable funding, or highly liquid assets based on use of such funding. Another, which could be applied market-wide, could involve minimum margin requirements for repurchase agreements and other securities financing transactions. Yellen, citing one study, said there might be room for stronger capital and liquidity standards for large banks than have been adopted so far