WASHINGTON (Reuters) - The Federal Reserve is expected to release this week a highly anticipated proposal for how it will oversee the largest U.S. banks, a person familiar with the plan said on Monday.
The proposal, which includes a group of rules such as new capital and liquidity requirements, was mandated by the 2010 Dodd-Frank financial oversight law, enacted in response to the financial crisis.
The rules are intended to make large banks more stable by ensuring they have enough capital and liquidity to absorb market shocks. They will also require banks to act to strengthen themselves if it appears they are heading into trouble, such as being overexposed to risky assets.
Release of the proposal could come as early as Tuesday, but it is possible it could be delayed until January if the proposal does not receive final approval this week from all members of the Fed's board.
Once the proposal is released, the banking industry and public will be allowed to
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