Fed Officials Warn Banks About Rising Riskier Loans

Federal Reserve officials have warned banks that they may be required to hold more capital against a rising level of high-risk, high-yield loans on their balance sheets, Bloomberg reported late Tuesday, citing a person close to the conversations. This year along, banks have arranged around the sale of around $411 billion of leveraged loans to investors so far this year, versus a record $696 billion for 2013. Regulators boosted scrutiny of banks after 2013 guidance issued by the Fed failed to curb volume or improve credit standards.

via Marketwatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza