WASHINGTON Feb 11 The Federal Reserve plans to
vote next week on new standards for banks operating in the
United States, including a proposal for foreign banks that has
been heavily criticized by their home regulators.
The Fed's board on Feb. 18 will consider finalizing rules
that require foreign banks with big U.S. operations to group all
their subsidiaries under a single holding company, according to
a notice on its website.
Those intermediate holding companies would have to meet the
same capital standards as U.S. banks.
Some foreign bank regulators complained that the 2012
proposal would disadvantage foreign banks, such as Deutsche Bank
and Barclays, and could cause other
jurisdictions to retaliate with tougher standards for some
The board also will take up a 2011 proposal for tougher
standards for domestic banks. The proposal included requirements
for banks' risk management, and other rules that tied into the
Fed's existing supervision of big banks.
It also included limits on banks' credit exposure to any
single counterparty, part of an effort to reduce the risks posed
by highly interconnected banks. Fed Governor Daniel Tarullo told
a congressional panel in July that this section would not be
finalized with the rest of the standards.
He said at the time that the Fed had decided to study the
impact of credit limits and would coordinate its rule making
with a global group that was also considering cracking down on
banks' exposure to counterparties.