Big Banks To Bolster Capital by 16% Under Proposed US Regulations: Financial Stocks Fall
Portfolio Pulse from Piero Cingari
US regulators have proposed that large banks increase their capital levels by an average of 16% to safeguard against potential future crises. This will primarily impact the largest banks, many of which already have sufficient capital to comply with these new rules. The Financial Select Sector SPDR Fund (NYSE:XLF) fell as much as 2.2% following the news. The new rules will also apply to institutions with as little as $100 billion in assets, affecting roughly 30 banks. The eight largest banks, including JPMorgan (NYSE:JPM) and Bank of America (NYSE:BAC), will see capital requirements rise by 19% on average.
July 27, 2023 | 7:42 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Bank of America is among the eight largest banks that will see capital requirements rise by 19% on average under the proposed regulations.
The proposed regulations will require Bank of America to increase its capital levels, which could impact its financial performance and stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
JPMorgan Chase is among the eight largest banks that will see capital requirements rise by 19% on average under the proposed regulations.
The proposed regulations will require JPMorgan Chase to increase its capital levels, which could impact its financial performance and stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The Financial Select Sector SPDR Fund fell as much as 2.2% following the news of the proposed regulations.
The proposed regulations have caused uncertainty in the financial sector, leading to a drop in the price of the Financial Select Sector SPDR Fund.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100