Reuters: Fed, OCC Differ on Leverage Lending Guidelines
Reuters reported that some major U.S. banks are privately complaining that they are getting the short end of the regulatory stick when it comes to the profitable business of lending to heavily indebted companies.
Reuters notes, according to sources with direct knowledge of the situation, that the Fed and the OCC appear to be taking different approaches to implementing a set of guidelines on leveraged loans, even though they issued them jointly in March last year.
The result, Reuters said, according to the sources, has meant that banks such as Credit Suisse and Goldman Sachs are able to be more aggressive in making leveraged loans just because they are regulated by the Fed, not the OCC.
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