Capital hike for biggest US banks chopped in half


The drafted revisions could also help Powell meet his goal of drawing broad support from the central bank’s board. — Reuters

Washington: The biggest US banks would face a 9% increase in capital requirements – a dramatic retreat from the original plan – after regulators agreed to sweeping changes to a proposed package of rules, according to people familiar with the matter.

The original plan by the US Federal Reserve (Fed), Federal Deposit Insurance Corp and the Office of the Comptroller of the Currency had called for a 19% jump in the capital that the eight US global systemically important banks, including Bank of America Corp and JPMorgan Chase and Co, must hold as a cushion against unexpected losses and financial shocks.

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