The U.S. Federal Reserve announced Friday it had finalized new capital levels of the nation’s largest banks following the June stress tests, although it added that Morgan Stanley is seeking reconsideration of its upcoming capital level.
The U.S. Federal Reserve announced Friday it had finalized new capital levels of the nation’s largest banks following the June stress tests, although it added that Morgan Stanley is seeking reconsideration of its upcoming capital level.
This move is being framed as a response to an annual stress test, however it also has the effect of reducing inflation without increasing interest rates, raising Federal taxes, or reducing government spending.
Bankers hate it because it reduces their profits, and in different political climates that has been enough to convince donation-dependent politicians to instead raise taxes or cut funding to necessary government programs that benefit the non-donor economic class.