GOLDMAN: New Fed Regulation Could Destroy 300,000 American Jobs
Lisa Du
BusinessInsider.com
5-3-2012
Goldman Sachs is arguing against a proposed Fed Rule by picking on probably the most sensitive topic in the American economy today: jobs.
The rule in question is a requirement that banks limit single counterparty exposures to 25% of their regulatory capital, and is being mandated as part of the Dodd-Frank reforms.
The Fed, however, is taking it a step further and wants banks with over $500 billion in assets to limit exposures to each other to only 10% of regulatory capital, in order to prevent a domino-effect collapse of multiple banks should just one fail, according to the FT.
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