Biggest banks face capital clampdown

From the FINANCIAL TIMES:

…The regulators plan to place each institution into a “bucket” carrying a particular surcharge based on bank size, global reach, structural complexity and whether other banks could absorb its business. Banks could move between categories as their size, structure and risk appetite change. ..

If the ideas are adopted, ­Citigroup, JPMorgan, Bank of America, Deutsche Bank, HSBC, BNP Paribas, Royal Bank of Scotland and Barclays would have to maintain core tier one capital ratios of 9.5 per cent, according to three people briefed on the discussions.

Goldman Sachs, Morgan Stanley, UBS and Credit Suisse would be in the next category down, facing a surcharge of 2 per cent and total minimum ratio of 9 per cent. …

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