The Fed intends to launch new regulation to stabilize the Financial system

　　According to Xinhua News Agency, The Federal Reserve Board proposed the introduction of a provision on the 3rd of April, to help large and complex financial institutions to file an orderly bankruptcy to avoid disruptive bankruptcy which threatens the stability of the financial system, and avoiding the repetition of the collapse of Lehman Brothers in 2008 that triggered the financial turmoil in the past.

　　Under the new regulations proposed by the United States eight systemically important banks and systemically important foreign banks operating in the US may be added to the terms stated in its derivatives entered into with customers, repurchase agreements, securities lending and other financial contracts, contracts opponents within 48 hours of systemically important banks to enter bankruptcy proceedings, may terminate the Contract.

　　The provision from now until August 5 to the community for comments. After the proposal is issued, the contract rival hedge funds and other systemically important banks objected to this provision, saying the provision deprived of investor rights.

　　The same day, the Federal Reserve and other regulatory bodies have jointly proposed two regulations that ensure the stability of the financial system, requiring large Banking Institutions retain a certain percentage of stable funding based on their assets, derivatives and other risky assets, thereby increasing the toughness of banking institutions and reducing the likelihood of bankruptcy.>> >> >>