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The Federal Reserve's plan to increase capital requirements for big banks is facing opposition from a wide range of groups, including civil-rights organizations, Democratic lawmakers, and affordable-housing advocates. Critics argue that the new requirements could disproportionately affect lower-income and minority borrowers, potentially widening the racial homeownership gap. Some lawmakers are also concerned that U.S. banks will face stricter rules than their overseas competitors, which could harm American consumers, banks, and businesses. The proposed rules aim to strengthen the resilience of the banking system and guard against various risks, including cyberattacks. [Extracted from the article]

The article reports that U.S. banks including Wells Fargo & Co. and J. P. Morgan Chase & Co. have reclassified billions of dollars worth of their bond holdings as "held to maturity" securities. The move is aimed at protecting the banks' capital levels in the event of rising interest rates, which typically cause bond values to decline. Banks are not required to write down the value of securities held to maturity.

The article discusses differing views on its ability to withstand market turmoil between Zions Bancorp. and the U.S. Federal Reserve (Fed). Stress tests administered by the Fed show it does not believe Zion's capital position is nearly as strong as the bank thinks it is. Zions chief executive Harris Simmons says his bank's business model varies greatly from those of much larger banks, who health the Fed's tests are aimed at assessing.

The article reports that all 31 large U.S. banks administered stress tests by the U.S. Federal Reserve (Fed) successfully passed. Two banks, Goldman Sachs Group Inc. and Zions Bancorp, could have their dividends or stock repurchases limited due to capital ratios close to acceptable minimum levels. Collectively the TIer 1 capital ratio for all the banks under a hypothetical economic contraction was well above the Fed's minimum.

The article reports that banking company J. P. Morgan Chase Co. plans to begin charging some of its institutional customers for keeping deposits with it. The move is in response to new capital and liquidity rules that make it more expensive for banks to hold deposits. Affected clients will be asked to either pay a fee, move their funds into a money-market or similar account, or deposit their money at a different bank.

The article discusses the impact of a strengthened U.S. dollar on a proposal from the U.S. Federal Reserve (Fed) for large banks to increase their capital levels. The banks contend the dollar's appreciation against the euro has made their assets looks larger relative to their European peers, thus forcing them to raise capital levels by billions of dollars. Officials from several banks including Goldman Sachs Group Inc. and Citigroup Inc. have met with Fed authorities to express their concerns.

The article reports that the European Central Bank (ECB) has advised many of the largest banks in the euro zone to increase their capital levels. Carlo Messina of banking company Intesa Sanpaolo SpA is among bank chief executives who believe banks wishing to pay dividends will need to have capital ratios higher than 11%. In January 2015 Banco Santander SA raised $8.4 billion by selling stock, while Deutsche Bank AG is considering moves to boost its own capital.

The article reports that banking company Banco Santander SA will increase its capital ratio to around 10% by selling up to $8.88 billion worth of stock. Santander chief financial officer José Garcia Cantera said the bank’s long-term goal was to maintain a ratio of between 10% and 11%. The move addressed the final of three goals Chairman Ana Botín upon assuming her position in September 2014.

The article reports that banking company J. P. Morgan Chase & Co. is the only one of eight large U.S. banks that will need to raise capital to meet a tougher capital standard proposed by the U.S. Federal Reserve. It is said Morgan will likely address its $21 billion capital shortfall by increasing retained earnings, a move that would reduce cash available for dividends and share buybacks. Banking analyst Mike Mayo said the new rules could put added pressure on big banks to downsize or break up.

The article reports that U.S. Federal Reserve (Fed) Daniel Tarullo says the Fed will require large U.S. banks to hold capital in excess of levels agreed upon by international bank regulators. The capital surcharge will be greater for banks such as Goldman Sachs Group Inc. and Morgan Stanley with a significant dependence on short-term funding.

The article discusses liquidity rules for U.S. banks expected to be approved by the Federal Reserve and Federal Deposit Insurance Corp. One would require banks to hold capital against all assets, while another would mandate that large banks hold safe, liquid assets such as U.S. Treasury securities sufficient to fund operations for 30 days. Consideration is given to how the rules could affect the banks' lending and profits.

The article discusses factors contributing to strong demand for U.S. Treasury securities. China and other foreign countries are buying treasuries in an effort to keep their currencies from appreciating. New rules regarding bank capital have prompted financial institutions to purchase Treasuries as well. These developments have helped foil the expectations of some that Treasury prices would fall as the U.S. Federal Reserve acted to wind down ts bond-buying program.

The article discusses circumstances surrounding an error in how Bank of America Corp. (BoA) calculated its capital that resulted in the April, 2014 withdrawal of plans to raise its dividend and repurchase shares. Suspicions among BoA employees that something was amiss were confirmed when they learned of revised guidance from the U.S. Federal Reserve about how bank capital should be affected by losses on debt securities.

The article reports that on May 18, 2014 co-chief executives Anshu Jain and Jürgen Fitschen of banking company Deutsche Bank AG said the bank would raise $11 billion through a rights offering. One-fifth of the shares to be sold will be bought by Paramount Holdings, an investment unit of Qatar's royal family. Deutsche Bank is selling the stock to strengthen its Tier 1 capital level.

The article reports that Bank of America Corp. announced it had made an error in a stress test bank examination report to the U.S. Federal Reserve Board which showed the bank with $4 billion more in bank capital than it actually has. The Federal Reserve has removed its prior approval of a dividend increase by the bank.

The article reports that banking company Citigroup Inc. has advised investors it won't be able to meet a target set by chief executive Michael Corbat of achieving a 10% return on tangible common equity by 2015. Information is presented on how the U.S. Federal Reserve's rejection in March, 2014 of the bank's proposal for increasing dividends and share repurchases has made it more difficult for Citigroup to increase its return on equity.

The article discusses regular meetings among large banks including Citigroup Inc., Deutsche Bank AG, and J. P. Morgan Chase & Co. aimed at reducing their exposure to swaps and other derivatives. Motivated by rules from the U.S. Federal Reserve and other regulators that propose higher capital levels for banks, the institutions seek to achieve that, in part, by canceling offsetting derivatives positions amongst themselves.

The article discusses results released on March 20, 2014 of stress tests that the U.S. Federal Reserve (Fed) administered to the nation's 30 biggest financial institutions. Only Zions Bancorp was found to have capital levels insufficient to withstand the two-year economic recession modeled by the Fed. Morgan Stanley and Bank of America Corp. were among larger banks with relatively low passing scores.

The author notes that finance is a global industry that tends to be regulated at a national level, and considers the U.S. Federal Reserve's (Fed's) decision to impose tougher capital requirements on foreign banks doing business in the U.S. The author notes that although the Fed's move did not please Michel Barnier and other European regulators, it serves as a model for those regulators to follow.

The article discusses the U.S. Federal Reserve's (Fed's) February 18, 2014 decision to impose tougher capital rules on foreign banks such as Deutsche Bank AG and Barclays PLC with U.S. assets of at least $50 billion. European commissioner Michel Barnier said a multilateral approach among international regulators would have been a better way to address the Fed's concerns.

The article discusses actions some European banks with operations in the U.S. are considering to circumvent stress tests and stricter capital rules from the U.S. Federal Reserve (Fed). UBS AG and Deutsche Bank AG are thinking about strengthening the capital positions of their U.S. subsidiaries by purchasing debt from them. Rabobank says it will sell assets down to below the minimum level at which the new Fed rules take effect.