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Fed Pressures Large U.S. Banks to Improve Capital Buffers (C) (JPM) (GS)

August 19, 2013 2:31 PM EDT
U.S. banks are active Monday following a Fed study released today that is looking to put more pressure on the largest U.S. banks to go above-and-beyond current capital requirements.

In the paper, the Fed discussed in detail its expectations for internal capital planning at large bank holding companies and described the range of practices it has observed at these companies during the past three Comprehensive Capital Analysis and Review (CCAR) exercises.

Also outlined more explicitly in the paper was the Fed's desire for the largest banks to hold more than the bare minimum capital buffer against potential losses, even above a banks' own internal standards.

The report, which is roughly 48 pages long, can be accessed here.

Names on watch include JPMorgan (NYSE: JPM), Bank of America (NYSE: BAC), Citigroup (NYSE: C), Wells Fargo (NYSE: WFC), Goldman Sachs (NYSE: GS), and Morgan Stanley (NYSE: MS).


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