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Fed Rethinks Loophole That Masked Losses on SVB’s Securities

The Federal Reserve may close a loophole for midsize banks to mask losses on securities. Regulators are considering extending toughened restrictions to about 30 banks.

  • The Federal Reserve may close a loophole that allowed midsize banks to mask losses on securities they hold.
  • The potential change could reverse a 2019 decision to loosen rules for midsize banks.
  • Regulators are considering extending toughened restrictions to about 30 companies with assets between $100 billion and $700 billion.
  • Regional banks such as U.S. Bancorp, PNC Financial Services Group Inc., Truist Financial Corp. and Capital One Financial Corp. could be affected.
  • Banks are planning to fight rule changes.
Fed Rethinks Loophole That Masked Losses on SVB’s Securities
Potential change would reverse 2019 decision to loosen rules for midsize banks

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