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GFC prevention: US banks must raise $72.7 billion in cash

From theage.com.au

The eight biggest US banks must raise a total of about $US68 billion ($72.7 billion) in capital by 2018 to comply with a new rule designed to prevent another financial crisis, prompting industry complaints that international standards are less restrictive and give their global competitors an advantage. US regulators on Tuesday (US time) finalised the rule to limit banks' reliance on debt. Banks will have to fund part of their business through less risky sources such as shareholder equity, rather than by borrowing money. "In my view, this final rule may be the most significant step we have taken to reduce the ... (full story)

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