WASHINGTON (AP) — Financial regulators requested input Wednesday on changes to accounting rules that could require many banks to increase their capital reserves.
The request comes after the board that sets U.S. accounting standards approved a rule in May that limits the ability of large banks to park loans and other assets in off-balance sheet vehicles. Many of those entities held mortgage-backed securities, and their lack of transparency was widely blamed for contributing to the financial crisis last year.
The rule change could force 19 of the largest U.S. banks, including Citigroup and JPMorgan Chase & Co., to shift up to $900 billion in assets onto their books.
The regulatory agencies said Wednesday that the change will likely require many banks to increase the funds they hold in reserve, to protect against losses. The agencies, including the Federal Reserve, Federal Deposit Insurance Corp. and the Treasury Department's Office of the Comptroller of the Currency, are seeking input on whether changes to the capital rules should be phased in or implemented immediately.