Large Regional Banks Face New Rules From Fed If They Fail (1)

Large regional banks would face new requirements under a plan from US regulators to bolster protections for consumers if they ever fail.

The Federal Reserve and the Federal Deposit Insurance Corp. on Friday proposed requiring the lenders to have an extra layer of “loss-absorbing capacity” should they run into trouble. The plan could put requirements more in line with those that the biggest, systemic Wall Street banks now face, according to regulators.

Since the 2008 global financial crisis, US regulators have issued a range of measures to resolve banks that fail with requirements tied complexity and risks. Regulators and Democratic ...