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MARKETS: The Fed is giving banks a big break—just as El-Erian points out they're back in subprime

Yahoo Finance's Jared Blikre and Alexis Christoforous break down the latest rule proposal by the Federal Reserve that would simplify bank capital and stress test regulations. Separately, the WSJ is reporting that bank lending to non-bank financial companies, many of which are themselves engaged in subprime lending, has grown to $345 billion, of which Wells Fargo has an $81 billion share.