Martin O'Malley

Martin O'Malley's policies onGovernment

Mandate higher capital requirements for big banks

Higher capital requirements are a straightforward, effective, and fair way to make the financial system significantly safer. In addition to requiring banks to fund themselves with equity instead of risky debt, they give regulators more leeway in the event of a crisis – without posing additional burdens on smaller banks. O’Malley will strengthen capital reserve requirements for the largest banks, requiring institutions with more than $500 billion in assets to have capital reserves of not less than 15 percent.

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