Fed proposes rules to boost stability of financial system

Staff Writer
Columbus CEO

WASHINGTON (AP) — The Federal Reserve has put forward new rules aimed at addressing one of the primary causes of the 2008 financial crisis — the financial exposures that the biggest banks had with each other.

The Fed is proposing new limits on that exposure. It hopes the new rules will prevent the type of crisis that engulfed the U.S. financial system in September 2008 when the collapse of Lehman Brothers raised fears about the stability of other banks that had made loans to Lehman.

The Fed on Friday approved by unanimous vote putting the new rules out for a 90-day comment period. Fed Chair Janet Yellen said the proposed rules would be "another important step to enhance the resiliency and stability of our financial system."