The Federal Reserve Board on Tuesday proposed a rule to further strengthen the capital positions of the largest, most systemically important U.S. bank holding companies.
The proposal establishes a methodology to identify whether a U.S. bank holding company is a global systemically important banking organization, or GSIB. A firm identified as a GSIB would be subject to a risk-based capital surcharge that is calibrated based on its systemic risk profile. Eight U.S. firms would currently be identified as GSIBs under the proposal: Bank of America Corporation, The Bank of New York Mellon Corporation, Citigroup Inc., The Goldman Sachs Group, Inc., JPMorgan Chase & Co., Morgan Stanley, State Street Corporation, and Wells Fargo & Company.
Securities Finance Monitor’s analysis will be forthcoming…