The Federal Reserve's top regulatory watchdog had a warning for America's big banks on Monday: the rules are about to get tougher.
Banks with at least $100 billion in assets will soon face higher capital requirements, meaning they'll be forced to keep a bigger buffer of liquid assets on hand to protect against potential losses. It also means mid-sized banks could soon have to meet criteria that used to be reserved for larger institutions.
"The risk of contagion implies that we need a greater degree of resilience for these firms than we previously thought," Barr said."[T]he losses posed to society by the failure of a given firm are greater, and the probability that another firm may be a victim to another firm's failure are higher."
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