Impact On The Nation’s Six Biggest Banks Under New Leverage Rule

HFA Padded
HFA Staff
Published on
Updated on
leverage rule

The FDIC on Tuesday will propose a leverage rule requiring big banks to have common equity equal to at least 5 percent of their assets—stricter than the international banking regulations known as Basel III, noted in CNBC. We have shown the scenario analysis in the article “Basel III Requirements: A Look at Largest Banks by RBC” dated July 2, 2013 highlighting leverage ratio  (3% to 6%) for the four largest banks, as well as Goldman Sachs Group Inc (NYSE:GS) and Morgan Stanley (NYSE:MS). Why is This Leverage Cap so Important? Jaret Seiberg, analyst at Guggenheim Partners in Washington, says the…

This content is exclusively for paying members of Hedge Fund Alpha

Log In

Insider Strategies and Letters to Shareholders from the Top Hedge Funds and Maximize Your Portfolio Growth with Hedge Fund Alpha

Don’t have an account?

Subscribe now and get 7 days free!

HFA Padded

The post above is drafted by the collaboration of the Hedge Fund Alpha Team.