by Ashley Clark, Director
The US senate has approved the biggest overhaul in financial services in the US since the 1930’s.
The new laws will reduce risks that banks take by restricting trading and lending practices as well as requiring banks to increase capital protection requirements to reduce the risk of financial difficulty in difficult economic times.
There is a new regulator to monitor Banks and there will also be restrictions on how big banks become to minimise consumer detriment should a huge “super bank” fail. There will be no more “super banks”. Regulators will also set new rules for consumer debt and lending via loans or credit cards.
Capital adequacy will be a gradual program with banks being required to increasing reserves over a five year period.
In addition, banks will be restricted in how much they can invest their own reserves in speculative investments to as low as 3% for certain types of investment.
Useful links:
Contact us - Book Callback - Free Consultation - Newsletter - Money MOT - Discounts