| Fed weighs tighter cap on bank leverage | Federal Reserve officials are weighing a stricter cap on bank leverage, a move that would respond to increasing demands to constrain the riskiness of large lenders.
According to people familiar with the matter, Fed officials have discussed increasing the amount of equity capital banks are required to hold, setting the bar higher than the 3 per cent of assets level agreed internationally.
The move is being considered amid growing scepticism about the Basel III capital accords, which impose higher capital requirements on banks around the world but allow them to vary the amount depending on the riskiness of individual assets. Officials are concerned that some banks are gaming the system.
http://link.ft.com/r/OZMCDD/7ZE03O/WLXS67/08LC9B/873BAY/ID/h?a1=2013&a2=4&a3=30
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