Fed to approve new bailout rules today

The Federal Reserve says big banks need about $70 billion more in loss-absorbing capital before new rules take effect on Jan 1, 2019.

The new standards will require eight systemically-important banks and financial firms have long-term debt that can be transformed into equity if the company fails. The rules are designed to prevent tax payers from footing the bill of a bailout.

In a statement, Yellen calls it "one of the last critical safeguards" to be put into place after the crisis. It requires 21.5% to 23% of risk weighted assets to qualify.

There is a question, however, if it will be fully implemented. Republicans have warned against implementing new rules before they take over.