JPMorgan may need over US$20b to meet capital rule

New York

JPMorgan Chase & Co, already facing the highest capital surcharge under international rules, may need more than US$20 billion in additional capital by 2019 to meet a new Federal Reserve requirement.

The Fed laid out a plan on Tuesday for boosting surcharges for eight large US firms beyond those already levied on the world's biggest banks by global regulators. While the Fed stopped short of specifying the buffers for each company, it said they probably will range from one per cent to 4.5 per cent based on last year's data - exceeding the maximum of 2.5 per cent set internationally.