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Fed proposes an extra capital cushion for 8 big U.S. banks

December 9, 2014, 7:57 PM UTC
Traders work in the Goldman Sachs stall on the floor of the New York Stock Exchange
Traders work in the Goldman Sachs stall on the floor of the New York Stock Exchange July 16, 2010. Goldman Sachs Group Inc shares opened 4.7 percent higher on Friday, the morning after the Wall Street firm agreed to pay $550 million to settle civil fraud charges. REUTERS/Brendan McDermid (UNITED STATES - Tags: BUSINESS) - RTR2GGZL
Photograph by Brendan McDermid — Reuters

The U.S. Federal Reserve on Tuesday will propose requiring eight of the largest U.S. banks to hold an extra capital cushion, and the firms will need even more equity if they rely heavily on short-term wholesale funding.

Most of the banks, which include JPMorgan Chase (JPM) and Goldman Sachs (GS), would need more capital under the Fed’s proposal than under a similar rule by global regulators, the Fed said.

Officials estimated U.S. banks would face a surcharge of between 1 to 4.5 percent of assets under the proposal.