Revelation 6:5,6 NCV When the Lamb opened the third seal, I heard the third living creature say, "Come!" I looked, and there before me was a black horse, and its rider held a pair of scales in his hand. Then I heard something that sounded like a voice coming from the middle of the four living creatures. The voice said, "A quart of wheat for a day's pay, and three quarts of barley for a day's pay, and do not damage the olive oil and wine!"
A regulatory requirement proposed on Friday by the Federal Reserve will force six of the eight globally systemically important U.S. banks to raise an additional $120 billion in order to comply.
Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs Group, JPMorgan Chase, Morgan Stanley, State Street, and Wells Fargo are to follow the requirements aimed at ensuring the banks so they are able to recapitalize without disrupting markets or requiring a government bailout.
The banks are expected to meet the $120 billion shortfall by issuing debt, a usually more cost-effective way than issuing equity, according to Federal Reserve officials speaking at a background press briefing Friday.
This proposal, along with others has been taken to avoid chaotic bank failures and according to Federal Chair, Janet Yellen, “would substantially reduce the risk to taxpayers and the threat to financial stability stemming from the failure of these firms.”
This requirement is one of a series of rules that have been aimed at reducing risk in the banking system by determining how much debt and equity banks should use to fund themselves.
