JPMorgan Chase and major Wall Street banks are clashing over a proposed Federal Reserve capital surcharge tweak. The revision targets how regulators measure short-term wholesale funding for global systemically important banks (GSIBs).
The proposal shifts the measurement from a risk-weighted assets ratio to an absolute exposure metric. This change favors banks heavily reliant on short-term funding, specifically Morgan Stanley and Goldman Sachs.
JPMorgan Chase stands to lose an estimated $13 billion in potential capital relief under the new rules. This internal industry conflict may delay the finalization of the Federal Reserve’s broader capital requirement overhaul.