Big Banks Seek to Liberate Billions of Dollars in Funds
By Liz Hoffman
Big banks have complained for years about a key feature of the Dodd-Frank overhaul requiring them to keep billions of dollars of cash in reserve. Some are trying to find a way around it. Commercial banks including Wells Fargo & Co. have been dangling higher rates over the past year to attract deposits from Fannie Mae, Freddie Mac and other government-backed lenders, according to industry executives. …The Federal Reserve last year proposed easing the minimum ratio banks would have to hit. The rule has yet to be completed. Karen Petrou, a D.C.-based adviser to bankers and regulators at research firm Federal Financial Analytics, said the move likely poses no threat to the system, calling it a “relatively non-evil form of regulatory optimization.”