©Reuters. FILE PHOTO: People wearing masks walk in front of the Federal Reserve Bank of New York in New York City, U.S., March 18, 2020. REUTERS/Lucas Jackson/File Photo/File Photo
(Reuters) – A group of banking regulators appointed by US President Joe Biden is considering new rules that would require large regional banks to add financial cushions that can be used in times of crisis, the Wall Street Journal reported on Sunday.
The new moves include regional banks raising long-term debt that will help absorb losses in bankruptcy cases, the WSJ reported, adding three people familiar with the matter.
The WSJ report comes over a week after Federal Reserve Chair Michael Barr said stricter rules for large regional lenders could soon come after a “holistic” review of capital requirements for banks was completed.
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