JPMorgan still has $12.5bn shortfall in meeting Fed Reserve's capital rules

Janet Yellen Seated

JPMorgan still has a shortfall of as much as $12.5bn in meeting capital rules approved by the Federal Reserve on Monday.

Bloomberg News reports that the Fed assigned capital charges totaling more than $200bn for eight of the biggest and most complex U.S. banks to mitigate the danger that they could threaten the financial system.

The extra capital requirements, or surcharges, range from 1% to 4.5% of the banks’ risk-weighted assets, leaving the firms to choose between expensive capital demands or getting smaller.

'They must either hold substantially more capital, reducing the likelihood that they will fail, or else they must shrink their systemic footprint, reducing the harm that their failure would do to our financial system', Fed Chair Janet Yellen said in a statement.

To access the complete Bloomberg News article hit the link below:

JPMorgan $12.5 Billion Short in Fed Systemic-Risk Charges

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