Largest banks would be limited on how much risk they could have with each other; the credit bureau has hired the former head of the computer giant's Watson unit.
The rule hews closely to a 2016 proposal but the central bank made a notable change to reflect a higher threshold for banks considered "systemically important."
Federal Reserve Chairman Jerome Powell said the agency has its hand full between proposals on liquidity and capital requirements and additional mandates made by the recently enacted regulatory relief law.
Almost half of systemically important financial institutions are trading in bear territory; bank is accused of overcharging customers for mortgage-backed securities.
U.S. banks reduced their holdings of state and local government bonds for the first time since 2009 after the federal government slashed corporate tax rates, according to figures released by the Federal Reserve Thursday.
The panel will vote on economist Richard Clarida to be vice chairman of the Fed board and Michelle “Miki” Bowman to take a seat designated for a community banking expert.
The regulatory relief legislation rolls back several stress test requirements for regional and midsized banks, putting more onus on financial institutions and their regulators to ensure banks are managing their risk appropriately.
