Federal Reserve Bank of Minneapolis President Neel Kashkari proposed a series of new rules for banks and non-bank lenders that he said would eliminate the threat posed by financial institutions whose failure could wreak havoc in the global markets.
The plan centers on significantly increasing the capital cushion banks must hold to protect against losses in a crisis. It also calls on the U.S. Treasury to determine which banks are “too big to fail” and face higher capital requirements. Finally, the plan would impose a tax on debt for large non-bank lenders and reduce the regulatory burden on community banks.
JPMorgan Chase & Co (>> JPMorgan Chase & Co.) has agreed to pay U.S. authorities $264 million to resolve allegations it hired the relatives of Chinese officials in order to win banking deals, the U.S. Securities and Exchange Commission and the Justice Department said in statements Thursday.
The SEC and Justice Department had been investigating over several years whether some of JPMorgan’s hiring efforts involved bribes, in violation of the U.S. Foreign Corrupt Practices Act.
The SEC will receive $130 million of the settlement, with $72 million going to Justice and $61.9 million to the U.S. Federal Reserve, which penalized the bank “for unsafe and unsound practices.”
JPMorgan did not admit or deny the charges. As part of its settlement with the Justice Department, a Hong Kong unit of the bank admitted to making quid pro quo hiring agreements with Chinese officials to win investment business.