Heel. The Wall St. Journal writes that that was the message regulators sent over the weekend to the biggest too-big-to-fail institutions. They must now hold capital equal to 9.5% of risk-weighted assets, compared with 7% for other big banks.
The Basel Committee's decision means Bank of America, Citigroup and J.P. Morgan Chase will together need about $150 billion of additional capital, according to Wall Street Journal and analyst estimates. The banks are unlikely, though, to have to raise fresh equity. Since the new rule doesn't fully kick in until 2019, banks should have time to build capital through profits while also reducing risk-weighted assets….
There’s more. Find it at:
http://online.wsj.com/article/SB10001424052702304447804576409791170989586.html?mod=WSJ_newsreel_markets
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