Fed shows preference for traditional banks with US$22b call on JPMorgan

New York

IN publicly declaring that JPMorgan Chase should raise US$22 billion, the Federal Reserve has delivered a hard blow to the largest US bank and shown its preference for traditional banks.

The central bank unveiled on Tuesday a new, tougher capital rule for eight big US banks considered systemically important, including JPMorgan, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Wells Fargo.