The Basel Committee on Banking Supervision, which increased banks' capital requirements this week, also approved a proposal that would affect some of the riskiest activities undertaken by financial institutions. The proposal would apply to investment in other financial companies, routine stock trades and other activities. "It is not a prohibition. It is a bias," said Scott Talbott of The Financial Services Roundtable. "They are saying if you want to engage in this, go for it, but you have to set aside more."

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