The U.S. Federal Reserve on Tuesday will propose requiring eight of the largest U.S. Banks to hold an extra capital cushion, and the firms will need even more equity if they rely heavily on short-term wholesale funding.
Most of the banks, which include JPMorgan Chase (JPM) and Goldman Sachs (GS), would need more capital under the Fed’s proposal than under a similar rule by global regulators, the Fed said.
Officials estimated U.S. Banks would face a surcharge of between 1 to 4.5 percent of assets under the proposal.
