On Wednesday , February 19 , the euro was trading at Forex neutral. At 8:30 MSK its exchange rate was U.S. $ 1.3760 Recently the U.S. currency is under pressure , and the main reason for this is working in America printing press. However, the effectiveness of emission constant dollars raises questions. In this regard, the Fed is looking for other ways to enhance profits.
Fed increases mandatory minimum capital reserves for the largest foreign banks operating in the United States , reports Associated Press. Tighter regulations made for the purpose of insurance against potential losses on loans and to prevent situations such as the one that gave birth to the global financial crisis of 2008 . The new requirements are similar to those that already exist for major U.S. banks.
The new Fed chief Janet Yellen on the first public meeting of the regulator , under her leadership stressed that the rule changes will help to eliminate the sources of vulnerability identified during the crisis. The new rules were adopted by five votes “for” , “against” was not filed a single vote .
Foreign banks oppose change. According to their management, stricter rules will increase the cost of business in the United States and reduce the volume of loans . At first glance, this is a weighty argument, but in fact it is untenable : the final price of money in the United States defines the Fed , and if desired, the controller cost can be even negative.
It can be stated that in the United States occurs redistribution of the banking market . Business Foreign players (primarily Japanese and European ) will be given to local organizations and banks in Japan and Europe will be forced to leave the country because of sagging rate of return and the loss of competitiveness. For the dollar , this is positive news soon in the long term , but in the short term, it can cause increased volatility due to reshuffle portfolios banking sector.