Talk about a jaw=dropping surprise! Goldman Sachs Group, the fifth- biggest U.S. bank, would have $728 billion in risk-weighted assets under new capital rules, a 67 percent jump from the amount it had under earlier regulations, Bloomberg reports.
Goldman Sachs plans to cut the figure to $700 billion by the
end of next year, Chief Executive Officer Lloyd C. Blankfein, 58, said today at
an investor conference in New York hosted by Bank of America Corp.’s Merrill
Lynch unit. About $18 billion of the reduction will come from cutting credit
risk, and $11 billion will come from market risk, said Blankfein in his seventh
straight appearance at the annual event.
The comments mark Goldman Sachs’s first public estimate of
risk-weighted assets under new Basel III rules, a figure that serves as the
denominator for determining regulatory capital ratios. The firm said last month
its capital ratio was about 8.5 percent, the exact amount it will be required
to maintain based on surcharges for the world’s largest banks released this
month by the Financial Stability Board….
Wait, wait...there's more at http://www.bloomberg.com/news/2012-11-13/goldman-s-risk-weighted-assets-seen-jumping-67-under-new-rules.html
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