The Federal Reserve may close a loophole that allows some midsize banks to effectively mask losses on securities they hold, according to people familiar with the matter
WASHINGTON—The Federal Reserve may close a loophole that allows some midsize banks to effectively mask losses on securities they hold, a contributing factor inLed by vice chair for supervision Michael Barr, the Fed is considering
ending an exemption that allows some banks to boost the amount of capital they report for regulatory purposes, according to people familiar with the matter. Capital is the buffer banks are required to hold to absorb potential losses.
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