JPMorgan Chase may need another $20 billion after Fed sets new rule

Fortune

JPMorgan Chase & Co. needs to find more than $20 billion to beef up its capital reserves by 2019 to meet new regulations issued by the Federal Reserve.

The New York-based bank already faces the highest capital surcharge under international requirements, and that’s getting even more stringent after the Fed set out a plan Tuesday to increase surcharges on the eight largest U.S. banks.

The additional buffer is intended both to reduce the risk of a bank failure, and the need for publicly-funded bailouts if a major bank does fail. The new range of surcharges reflects the authorities’ desire to make sure that banks that are “systemically important” are even safer than smaller ones, and thus end the concept of “Too Big To Fail”.

The Fed didn’t outline specific requirements for each bank, but said it would raise its capital requirements anywhere from 1% to 4.5% of risk-adjusted assets. In…

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