Three systemic US banks face stress capital buffer add-ons

JP Morgan, Goldman Sachs, Morgan Stanley will see minimum requirements increase under new regime

Goldman Sachs, JP Morgan and Morgan Stanley will all see their minimum solvency requirements increase from October 1 under the Federal Reserve’s new stress capital buffer (SCB).

Of the eight systemic US banks, only these three have indicated their SCB will be higher than the old capital conservation buffer (CCB) it replaces. The new requirement is set at an amount equal to a bank’s peak-to-trough capital loss under the Fed’s stress test plus four quarters of dividends. Each bank’s SCB is