New rules to limit failing banks

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FILE – This June 8, 2017, file photo shows the U.S. Treasury Department building in Washington. The national debt has passed a new milestone, topping $22 trillion for the first time. The Treasury Department’s daily statement shows that total outstanding public debt stands at $22.01 trillion. It stood at $19.95 trillion when President Donald Trump […]

The Federal Reserve Board proposed a rule to reduce the impact of the largest banking organizations from failing.

The largest and most complex banking organizations are required to issue debt which can be used as capital during bankruptcy.

The new rule would require banking organizations to have additional capital against debt which would reduce the impact of the financial system from failing.

The proposal also requires regulating agencies to publicly report the outstanding debt of large banks.

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