The new capital rules proposed by the Federal Reserve cast new shadows on JP Morgan. The US bank, in fact, risks finding itself short by as much as 22 billion dollars. This was suggested by Fed vice president Stanley Fischer, who defined the figure that he would be missing from JP Morgan's coffers as "impressive".
The Fed wants to ensure that the eight largest US banks set aside additional capital: the capital strengthening will take into account the size of the institutions, their reliability and their level of interconnectedness with the financial system. The banks in question are Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, Wells Fargo, Bank of New York Mellon and State Street.
The Fed's rules are stricter than those established in Basel for the Eurozone, so much so that the American central bank estimates that the additional capital could reach up to 4,5% of risky assets. If they fail to meet the new criteria, banks will not be able to issue dividends or bonuses. And the only institution not in a position to comply with the new requirements is JP Morgan.
