Bloomberg has reported that new Fed Chief Janet Yellen has said that large U.S. banks may need additional capital beyond what is already required in order to weather another financial crisis. Particularly, larger more complex banks that are funding operations with more short-term types of loans may need to keep additional liquid capital on hand.
In this segment from Tuesday's Where the Money Is, Motley Fool financial analyst Matt Koppenheffer takes a look at the statement by Yellen, and talks about how the Fed reached these results, how likely new capital requirements on banks could be, and which banks in particular might be affected.
