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MNI: Fed's Barr: 9% Capital Hike For Top Banks In Re-Proposal

The Federal Reserve's top banking regulator Michael Barr on Tuesday said the biggest U.S. banks would face a 9% increase in capital requirements in a re-proposal of Basel endgame and G-SIB surcharge rules.

For other large banks that are not G-SIBs, Barr said the impact from the re-proposal would mainly result from the inclusion of unrealized gain and losses on their securities in regulatory capital, estimated to be equivalent to a 3% to 4% increase in capital requirements over the long run, according to prepared remarks. The remainder of the re-proposal would increase capital requirements for non-GSIB firms still subject to the rule by 0.5%.

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The Federal Reserve's top banking regulator Michael Barr on Tuesday said the biggest U.S. banks would face a 9% increase in capital requirements in a re-proposal of Basel endgame and G-SIB surcharge rules.

For other large banks that are not G-SIBs, Barr said the impact from the re-proposal would mainly result from the inclusion of unrealized gain and losses on their securities in regulatory capital, estimated to be equivalent to a 3% to 4% increase in capital requirements over the long run, according to prepared remarks. The remainder of the re-proposal would increase capital requirements for non-GSIB firms still subject to the rule by 0.5%.

Keep reading...Show less