The Federal Reserve on Thursday proposed tough new rules to require banks to hold even more in reserves as a capital buffer to better withstand future financial crises. Wall Street has been watching the rulemaking on capital buffers closely. Requirements about capital cushions can directly impact banks’ ability to lend, make financial bets and profit off those loans or bets. Tougher capital cushions are also a key step toward making banks safer and avoiding future taxpayer bailouts.
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