Fed Proposes New Rules for US Banks Following Failures.

US banks are divided as regulators seek to strengthen oversight after a series of failures eroded confidence in the financial system. Regional lenders, who are more likely to face new rules, are trying to persuade regulators to increase oversight of larger banks, which may have to cover a larger portion of the costs of bailouts. However, members of Congress, facing public anger over wealthy depositors being made whole, are less receptive than ever to lobbying for weaker regulation.