JP Morgan, BofA say Basel III plan could wipe out capital cushion

Banks forecast $82 billion cumulative hike in capital requirements from Fed proposals

JP Morgan and Bank of America have warned that their capital cushions would all but evaporate if the Federal Reserve’s Basel III endgame proposal was implemented in its current form.

JP Morgan predicted its Common Equity Tier 1 capital requirements would surge by 25% compared with the figure at the end of September. The overall requirement would total $250 billion, against the $241.8 billion in actual CET1 capital as of that date.

Similarly, Bank of America reckoned required capital would inflate

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