VAR switch may explain $500 million capital hike at Wells Fargo

Change in stress period drives 15% increase in market risk capital requirement

A rare update to Wells Fargo’s value-at-risk model may have driven a 15% increase in its market risk capital over the three months to end-June.

The bank’s market risk capital requirement grew to $3.7 billion from $3.2 billion, the only significant capital surge across the eight US global systemically important banks (G-Sibs).

Two-thirds of this total increase was caused by a 25% leap in the bank's stressed value-at-risk requirement, to $1.5 billion. This jump occurred following a second

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here