Skip to content
Subscriber Only

Fed Said to Delay Bank Leverage Cap Until Basel Completed

The Federal Reserve has decided to delay imposing limits on leverage at eight of the biggest U.S. financial institutions until a global agreement is completed, according to two people briefed on the discussions.

Fed officials want to wait for a finished rule from the Basel Committee on Banking Supervision before completing their own requirement for how much capital U.S. banks must hold as a percentage of all assets on their books, said the people, speaking on condition of anonymity because the process isn’t public. The international accord is shaping up as weaker in some respects than the U.S. plan.