Minneapolis Fed President Kashkari Says Banks Should Raise Capital Immediately
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said the large U.S. banks should immediately raise $200 billion in capital to prepare for an incoming economic downturn.
"Raising that amount from private investors today, as a strong, preventive measure, would ensure that large banks can support the economy over a broad range of virus scenarios", he wrote in an op-ed in The Financial Times.
Kashkari, who played a major role in the creation of the Troubled Asset Relief Program (TARP), which was part of the U.S. government's response to the Great Recession in 2008, also said banks should stop paying dividends.
Source Fool.com
