Required increases in capital for banks like JPMorgan and Goldman Sachs meant to ensure they have sufficient buffers to absorb potential losses — would on average be about half as much as originally floated, the Journal added. The three bank regulators, led by the Fed, in July last year unveiled a proposal to overhaul how banks with more than $100 billion in assets calculate the cash they must set aside to absorb potential losses. The Basel proposal aims to make banks more resilient to potential losses, lowering the risk of failures or bailouts. Banks say that they are already highly capitalized and the changes are unnecessary. Big U.S. banks have lobbied against the Basel proposal, which they say will force them to overhaul or shut down a range of products and businesses.

Source: Wall Street Journal May 20, 2024 04:19 UTC