Fed methodology adds as much as 2% to US G-Sib surcharges

Morgan Stanley’s binding add-on is three times as high as under Basel framework

The US Federal Reserve’s parallel methodology for scoring global systemically important banks continues to generate higher capital surcharges for top US banks than under Basel rules, Risk Quantum analysis shows, as hopes fade that formulas will be revised to level the field with overseas peers anytime soon.

Once designated as G-Sibs by the Financial Stability Board under the Basel Committee on Banking Supervision’s methodology, US banks are subject to two scoring processes: the one prescribed by

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