- Finalizing the criteria on the eight largest banks' leverage ratios - a minimum 5% at the holding company level and 6% at the bank subsidiary level - U.S. regulators impose a far tougher standard than international norms of 3%.
- The eight affected: BK, BAC, C, GS, JPM, MS, STT, WFC.
- The regulators at work were the Fed, the FDIC, and the OCC, and the Fed's Dan Tarullo indicates he wants to go further, signaling the central bank may boost the risk-based capital surcharge to a higher level than the international standard. The most to lose in this scenario would be investment banks like Goldman and Morgan Stanley who don't have the deposit bases of their retail brethren.
- Banks have until January 1, 2018 to comply with the new rule.
- Related ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, PFI, KBWB, FNCL, FINU, KCE, RWW, RYF, PSCF, FINZ, KBWC
New rules forces largest banks to hold another $68B in capital
From other sites
at 4-traders.com (Wed, 2:21AM)
at CNBC.com (Mar 19, 2015)
at CNBC.com (Mar 5, 2015)
Bank of New York Mellon Corp's Series C Noncumulative Perpetual Preferred Stock Ex-Dividend Reminderat Nasdaq.com (Feb 27, 2015)
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