Bancorp to cut its size to avoid added Fed scrutiny

Tough laws: US Bancorp has agreed to a stricter regulatory regime as part of its deal for Mitsubishi UFJ’s Union Bank. The regional lender won approval from the Fed to retain its designation as a Category III bank, it says in a regulatory filing. — Bloomberg

NEW YORK: US Bancorp promised federal regulators it would shrink its balance sheet and reduce its risk profile, a move that frees it from more stringent regulations.

The nation’s largest regional lender won approval from the Federal Reserve (Fed) to retain its designation as a Category III bank, it said in a regulatory filing.