The Fed's New Rules for Foreign Banks

The video discusses new rules by the Federal Reserve focusing on liquidity, targeting banks with risky U.S. subsidiaries. It highlights the impact on international banks like Deutsche Bank, Credit Suisse, and Barclays, which may face penalties. The rules require compliance with liquid asset requirements set by regulators, potentially increasing costs by up to 4%. The video concludes with open questions about the implications for investment banks.

What is the primary focus of the new rules introduced by the Federal Reserve?

• Interest rates

• Liquidity

• Capital gains

• Taxation

Which banks are mentioned as being potentially penalized under the new rules?

• Goldman Sachs and Morgan Stanley

• Deutsche Bank and Credit Suisse

• Bank of America and Wells Fargo

• HSBC and Citibank

What is the estimated cost increase for banks due to the new liquidity asset requirements?

• 4% to 5%

• 1% to 2%

• 2% to 3%

• 3% to 4%

Which banks will need to follow liquidity asset requirements set by regulators?

• Credit Suisse and UBS

• Barclays and HSBC

• Deutsche Bank and Citibank

• Goldman Sachs and Morgan Stanley

What is the range of the total liquid asset pool increase for the affected banks?

• $3 billion to $9 billion

• $500 million to $5 billion

• $1 billion to $10 billion

• $2 billion to $8 billion