U.S. banks back European rivals in fight against Fed

U.S. banks have come out in support of their European peers that are fighting the Federal Reserve’s decision to impose tighter capital requirements on their U.S. operations.

Top bankers from Europe, the U.S. and Japan are rallying to oppose the Fed’s proposal that deviates from common international bank rules, reports FT.com.

The U.S. central bank wants large foreign banks, for fear of having to bailout their U.S. subsidiaries, to “hold a minimum level of 7% core capital to risk-weighted assets by 2015.”

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