Fed laying the smack down on overseas banks in the US

Fed staffers are proposing the final rules for stricter oversight of foreign banks operating in the US. The FBO rule will require foreign banks with over $50bn or more in assets to set up an intermediate holding company. The Fed says that may be appropriate for 15-20 banks operating at the moment.

Any banks with more than $10bn in assets will be subject to stress tests.

The rule is said to come in for 1st July 2016