FRB Approves Final Rule on GSIB Capital Surcharges
The Board of Governors of the Federal Reserve System ("FRB") approved a final rule requiring the largest and most systemically important U.S. bank holding companies to strengthen their capital positions.
Under this final rule, a firm that is identified as a global systemically important bank holding company, or "GSIB," must hold additional capital to increase its resiliency in light of the greater threat that it poses to the financial stability of the United States. Estimated surcharges for the eight identified GSIBs range from 1.0 to 4.5 percent of each firm's total risk-weighted assets. According to the release, the identified GSIBs include: Bank of America Corporation; The Bank of New York Mellon Corporation; Citigroup, Inc.; The Goldman Sachs Group, Inc.; JPMorgan Chase Co.; Morgan Stanley; State Street Corporation; and Wells Fargo Company.