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FT Alphaville » Fed seeks to break up long-standing US bank lovefest

Earlier this year the Fed proposed new rules that would limit banks’ exposure to each other even more than the Dodd-Frank reforms, coming into force next year, already demand. The banks went away to think about it, and it’s safe to say they have some concerns. Goldman Sachs, in fact, has sent the Fed 20 pages-worth of its concerns just ahead of a meeting in New York today with Daniel Tarullo, the Federal Reserve governor, and assorted big bank executives.

In short, Goldman summarises, “parts of the Proposed Rules appear likely to damage, rather than strengthen, the systemic safety of the US financial sector and ultimately the US economy.” Oh, and it’s going to cost the US up to 300,000 jobs according to their calculations and cut economic growth by up to 0.4 per cent.

via FT Alphaville » Fed seeks to break up long-standing US bank lovefest.

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