Fed’s Kashkari: Make big banks put 20% down—just like home buyers do

Minneapolis Fed President Neel Kashkari wrote a piece in the Wall Street Journal (WSJ) today, an extract of which is here under:

“There's a straightforward way to help prevent the next financial crisis, fix the too-big-to-fail problem, and still relax regulations on community lenders: increase capital requirements for the largest banks.”

“In November, the Federal Reserve Bank of Minneapolis, which I lead, announced a draft proposal to do precisely that. Our plan would increase capital requirements on the biggest banks-those with assets over $250 billion-to at least 23.5%. It would reduce the risk of a taxpayer bailout to less than 10% over the next century.”

Full article here

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.