Monday
Nov092015
Banks May Need to Raise $1.2 Trillion to Prevent Another Lehman
Monday, November 9, 2015 at 10:30AM BLOOMBERG
Banking behemoths led by HSBC Holdings Plc and JPMorgan Chase & Co. now know the cost they’ll have to shoulder so the global financial system doesn’t have another Lehman moment. The Financial Stability Board, created by the Group of 20 nations in the aftermath of the crisis, published its plan for tackling banks seen as too big to fail.
The most systemically important lenders must have total loss-absorbing capacity equivalent to at least 16 percent of risk-weighted assets in 2019, rising to 18 percent in 2022, the FSB said on Monday. A leverage ratio requirement will also be imposed, rising from 6 percent initially to 6.75 percent. Bloomberg reported these numbers on Oct. 2.
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