While this package of rules aims to bolster financial stability in the economy by significantly increasing capital requirements for large U.S. banks, the consequences could be dire for farmers and ranchers, and others in Montana’s heartland. The “Basel” refers to Basel, Switzerland, which is where this proposal originated.

The basic proposal is this: The Fed is proposing that banks be required to hold as much as 20% more capital (cash) than they are presently required to hold.