The Federal Reserve has issued proposals intended to prevent the collapse of major financial firms, including limits on banks' credit exposure to one another and new risk-management responsibilities for boards of directors. The rules proposed Tuesday apply to banks with $50 billion or more in assets and other systemically important firms. "The proposal would create an integrated set of requirements that seeks to meaningfully reduce the probability of failure of systemically important companies and minimize damage to the financial system and the broader economy in the event such a company fails," according to the central bank. Read the news release from the Federal Reserve.
Published in Brief: