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Fed mulling higher capital cushion for banks handling commodities -FT
November 3, 2015 / 6:01 PM / in 2 years

Fed mulling higher capital cushion for banks handling commodities -FT

WASHINGTON, Nov 3 (Reuters) - The U.S. Federal Reserve is considering requiring banks that handle physical commodities to increase their capital buffers as a hedge against accidents, such as tanker spills or gas pipeline explosions, the Financial Times reported on Tuesday.

The paper, citing people briefed on the matter, said the U.S. central bank wants to use the new capital charges to discourage banks from risky activities that could threaten their survival in the event of a catastrophe. (Reporting by Timothy Ahmann; Editing by Mohammad Zargham)

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