NY Post: Banks fear mass branch closings, layoffs over Fed's proposal
The NY Post runs this story last Sunday. It is about new rules that the Fed will impose on the 8 largest US banks to hold more liquid capital in reserves. The idea is to reduce the risk of another systemic banking crisis. Some quotes and a comment below.
"The Federal Reserve Bank, led by Janet Yellen, is preparing to rip up the balance sheets of US banks, causing capital flight and widespread branch closings, and threatening thousands of bankers’ jobs and compensation, analysts told The Post."
"The proposed Federal Reserve capital-requirement rules — to protect US banks from the kind of financial crisis that in 2008 brought the American banking system to its knees — may soon feel like an echo of those dreary days."
"Bankers are already in shock. While some of the final sums are sketchy, the Fed has spelled out the amount the eight banks will need to comply — a nauseating $21 billion in capital. It comes on top of other surcharges imposed by global regulators."
MeanwhileJim Rickards does this short video claiming that some Fed Board members have told him the Fed does not know if what they are doing will work or not. Perhaps we find out in 2015?
A question I get here is how can the average person prepare for change given that so many different future scenarios are possible? On January 1st 2015 I will have an in depth article that talks about this. It will give the history for why this blog was started, what it hopes to do, and offer some common sense ideas that anyone should be able to use to prepare for whatever happens. This article will also be provided as a Google document in Word format so that it can be easily printed and given to anyone interested. Of course it will be free to anyone who can use it. Please do hand it out to anyone you think can use it.