Minneapolis Fed terms US plan to ease large bank requirements 'alarming'

26 November 2018 8:54pm
The Minneapolis US Federal Reserve Bank, one of the Fed’s 12 operational arms, termed "alarming" the central bank’s proposal last month to loosen liquidity requirements for many large US firms.

Recalling the financial crisis a decade ago, the Minneapolis Fed’s letter said: “What is most alarming is that this is not a future generation forgetting mistakes of their parents or grandparents. It is the same generation that made the terrible mistakes in the first place that is already forgetting and now is following the same path again.”

Headed by Neel Kashkari, the Minneapolis Fed also said it is “deeply troubled” by other Fed efforts to change stress testing and leverage ratio requirements. These proposals “will weaken taxpayer protection from bailouts,” the letter said.