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Fed proposing rules for foreign banks' US units

Published on NewsOK Modified: December 14, 2012 at 3:35 pm •  Published: December 14, 2012

The Fed's proposal would apply to 23 foreign banks that have both worldwide assets and assets in the U.S. of at least $50 billion each. Banks in that category include British bank HSBC, Germany's Deutsche Bank, Canada's TD Bank and Dutch bank ING.

A less stringent level would apply to 84 foreign banks with $50 billion or more in worldwide assets but less than $50 billion in U.S. assets.

Fed Vice Chairwoman Janet Yellen asked agency staffers at the meeting whether there's a risk that many other countries could respond by imposing similar rules on U.S. banks operating abroad. Staff members said it was difficult to predict, but they believe such action on a "large scale" by other countries is unlikely.

The proposal is open to public comment for 90 days and could be formally adopted by the Fed after that.