U.S. regulators have asked some banks to take more deposits from large investors even if it’s unprofitable, and lenders in return are seeking relief on insurance premiums and leverage ratios, Bloomberg reported.
 
Deposits are flooding into the biggest U.S. banks as customers seek shelter from Europe’s debt crisis and falling stock prices. That forces lenders to raise capital for a growing balance sheet and saddles them with the higher deposit insurance payments. With short-term interest rates so low, it’s hard for financial firms to reinvest the new money profitably.
 
Regulators have asked banks to take the deposits anyway, according to insiders who did not want to be identified, in an effort to improve the stability of the financial system.
 
Some of the largest banks reportedly have talked to regulators about softening rules for ratios that measure capital and assets. At least one asked for a waiver on paying higher premiums to the Federal Deposit Insurance Corp.