Fed Said to Weigh Forcing Foreign Banks to Add U.S. Capital
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U.S. units of foreign lenders including Deutsche Bank AG may be required by regulators to comply with tougher capital rules that some banks sought to skirt, three people with knowledge of the discussions said.
The Federal Reserve, drafting standards for the nation’s largest banks, may force non-U.S. firms to house all of their U.S. businesses, including securities trading, within a regulated holding company, said the people, who requested anonymity because the rules haven’t been completed. That means local units would have to bolster capital in the U.S. to guard against losses regardless of their parents’ resources.