Written by MARTIN CRUTSINGER-AP Economics Writer
(AP) — The Federal Reserve is putting forward two proposals to modify regulations put in place after the 2008 financial crisis that the banking industry complained were too restrictive.
The proposed regulatory changes were approved on a 4-1 vote with Fed board member Lael Brainard opposing the changes. She said they “would weaken important safeguards” put in place after the 2008 financial crisis.
The measures will not go into effect until after a public comment period ends this summer. One proposal deals with liquidity, the amount of funds a bank must maintain that would be readily available in times of crisis.
The other would loosen the frequency that some foreign and domestic banks would be required to submit “living wills,” the documents that show how a failed bank would wind down operations.