Fed finalizes rule limiting big banks’ exposure to each other

Published June 14, 2018 7:16pm ET



The Federal Reserve finalized a rule Thursday to limit the size of bets that banks can have with each other, a piece of the 2010 Dodd-Frank law that has been in the works for a long time.

Officials said the rule is meant to address one of the causes of the financial crisis, that the failure of each bank endangered many others that it owed money — a situation known as “contagion.”

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