The Federal Reserve has proposed raising capital and liquidity requirements for foreign financial institutions, prompting opposition from the industry, other central banks and, now, the New York State Department of Financial Services. The New York regulator told the Fed that an exemption should be made for banks with less than $50 billion in US assets. Meanwhile, Deutsche Bank has warned that the proposal could "increase the potential for failure" of a foreign bank's US subsidiary and that it would reverse progress on international coordination of regulation.

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