Fed proposes rules for foreign banks’ cushion
WASHINGTON — The Federal Reserve is proposing that large foreign banks keep a bigger financial cushion against unexpected losses for their U.S. affiliates.
The Fed governors, including Chairman Ben Bernanke, voted 7-0 at a meeting Friday to propose the rules. They are aimed at preventing another financial crisis. The rules were mandated by the 2010 financial overhaul and would apply to those foreign banks with $50 billion in worldwide assets that operate in the United States.
That means their U.S. affiliates would be subjected to the same capital reserve requirements as U.S. banks. The U.S. operations would have to take the form of a bank holding company, putting them under the Fed’s oversight.
The rules wouldn’t take effect until July 2015.
By Kirk Ladendorf
Austin’s HelioVolt Corp. has raised additional funds to support its solar power module business, according to regulatory documents.
The 11-year-old company reported this week that it has raised an additional $12.2 million in debt securities, which include a right to acquire stock in the future.
The company is in early production of solar power panels that use a thin-film technology to create electricity, said John Prater, vice president of business development.
The new funds came from some of the company’s existing investors, he said.
“We continue to make progress and we are thrilled by our investor support,” Prater said.
The company has raised more than $200 million over the years to support the development of its technology and the building of its manufacturing plant in Southeast Austin.
In September 2011, the company disclosed a $50 million investment from SK Group, a South Korean conglomerate that sought to expand into alternative energy technology.
Prater declined to say how many workers the company presently employs.
“We do have certified product that we are shipping to a limited set of targeted customers and test sites,” he said.
The company’s other existing investors include: NEA, Paladin Capital Group, Masdar Capital, Morgan Stanley, Noventi Ventures, Passport Capital and Yellowstone Capital Partners.