WASHINGTON: The eight biggest U.S. banks will need to hold twice as much equity capital as required globally under a new rule launched by U.S. regulators on Tuesday, intended to protect taxpayers from any future costly bailouts.
The rule, launched by the country's three main banking regulators, would impose a so-called leverage ratio, a hard cap on how much banks can borrow to fund their business, requiring them to hold equity capital equal to 6 percent of total assets.
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