Wall Street Banks Face Regulatory Headwinds That Could Deplete $118 Billion In Excess Capital
Portfolio Pulse from Piero Cingari
Wall Street banks including JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc, Wells Fargo & Co., Morgan Stanley and others are preparing for regulatory changes that could potentially wipe out nearly all of the $118 billion in extra capital they've accumulated over the past decade. The Federal Reserve and the Federal Deposit Insurance Corporation will discuss proposed changes on banks' regulatory capital, marking the first step towards the U.S. adopting the final version of the Basel III international banking standards. The changes have been criticized by bank executives who argue they could make them less competitive against their European counterparts and private equity firms such as Apollo Global Management and Blackstone Inc.
July 26, 2023 | 4:07 pm
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Bank of America Corp. could potentially lose a significant portion of its extra capital due to impending regulatory changes. The bank is one of only two that a Morgan Stanley analysis found could meet the required capital accumulation timeline set by the Federal Reserve.
The impending regulatory changes could potentially wipe out nearly all of the extra capital that Bank of America has accumulated over the past decade. This could significantly impact the bank's financial stability. However, the bank is one of only two that could meet the required capital accumulation timeline set by the Federal Reserve, which could mitigate some of the potential negative impacts.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Citigroup Inc. could potentially lose a significant portion of its extra capital due to impending regulatory changes. The bank's ability to provide low-cost loan options to borrowers could be limited by the new rules.
The impending regulatory changes could potentially wipe out nearly all of the extra capital that Citigroup has accumulated over the past decade. This could significantly impact the bank's financial stability and limit its ability to provide low-cost loan options to borrowers, which could in turn affect its competitiveness and profitability.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Goldman Sachs Group Inc could potentially lose a significant portion of its extra capital due to impending regulatory changes. The bank's trading businesses could be particularly hard hit by the new rules.
The impending regulatory changes could potentially wipe out nearly all of the extra capital that Goldman Sachs has accumulated over the past decade. This could significantly impact the bank's financial stability and particularly affect its trading businesses, which could in turn affect its competitiveness and profitability.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
JPMorgan Chase & Co. could potentially lose a significant portion of its extra capital due to impending regulatory changes. The bank's CEO, Jamie Dimon, has stated that the company may have to raise prices for products most affected by the changes.
The impending regulatory changes could potentially wipe out nearly all of the extra capital that JPMorgan has accumulated over the past decade. This could significantly impact the bank's financial stability and force it to raise prices for certain products, which could in turn affect its competitiveness and profitability.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Morgan Stanley could potentially lose a significant portion of its extra capital due to impending regulatory changes. The bank's ability to provide low-cost loan options to borrowers could be limited by the new rules.
The impending regulatory changes could potentially wipe out nearly all of the extra capital that Morgan Stanley has accumulated over the past decade. This could significantly impact the bank's financial stability and limit its ability to provide low-cost loan options to borrowers, which could in turn affect its competitiveness and profitability.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Wells Fargo & Co. could potentially lose a significant portion of its extra capital due to impending regulatory changes. The bank's ability to provide low-cost loan options to borrowers could be limited by the new rules.
The impending regulatory changes could potentially wipe out nearly all of the extra capital that Wells Fargo has accumulated over the past decade. This could significantly impact the bank's financial stability and limit its ability to provide low-cost loan options to borrowers, which could in turn affect its competitiveness and profitability.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
Apollo Global Management could potentially benefit from the impending regulatory changes that could make Wall Street banks less competitive.
The impending regulatory changes could potentially make Wall Street banks less competitive, which could in turn benefit private equity firms like Apollo Global Management.
CONFIDENCE 50
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Blackstone Inc. could potentially benefit from the impending regulatory changes that could make Wall Street banks less competitive.
The impending regulatory changes could potentially make Wall Street banks less competitive, which could in turn benefit private equity firms like Blackstone Inc.
CONFIDENCE 50
IMPORTANCE 50
RELEVANCE 50