Measure to boost capital levels passes Senate

WASHINGTON (BestGrowthStock) – Large financial firms would have to set aside more capital to boost their stability during times of crisis under a measure unanimously adopted by the Senate on Thursday as part of a sweeping rewrite of banking rules.

The measure, which passed by voice vote, would direct regulators to increase capital requirements as firms grow in size or engage in riskier lending practices.

It would ensure that bank holding companies and other firms operate under standards at least as stringent as those applied to insured banks.

The measure, sponsored by Republican Senator Susan Collins, aims to make sure that highly leveraged financial giants do not again threaten the stability of the system as a whole, as they did during the 2008-2009 financial crisis.

Current law does not require regulators to adjust capital standards for riskier firms.

Regulators would assess not only a firm’s size, but also the nature of its assets as they determine capital requirements.

Stock Today

(Reporting by Andy Sullivan; Editing by Gary Hill)

Measure to boost capital levels passes Senate