Ditching Fed’s method 2 could unlock $112bn for top US banks
JPM and BofA could see largest capital gains if US G-Sib surcharge approach dropped, amid speculation of a framework overhaul
Dropping the US-specific method 2 approach to calculating surcharges for the country’s systemically important banks would benefit seven of the eight US firms designated as G-Sibs and lower aggregate capital requirements by $111.6 billion, Risk Quantum analysis found.
Under the current regime, the G-Sib surcharge for US banks is set as the higher of that calculated under the Financial Stability
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