Big banks better start looking under the couch cushions. They need to come up with $1.2 trillion to fortify themselves from the next financial meltdown.
Global financial regulators Monday issued new rules that are designed to prevent a failing big bank from dragging down the entire financial system. That’s what happened in 2008 when Lehman Brothers imploded, sparking the worst financial crisis since the Great Depression.
The rules call for the 30 biggest banks in the world to boost their capital cushions, the loss-absorbing cash they have to set aside for financial storms.