Wall St Banks Turn on Each Other Over Capital Relief

Wall Street banks have traditionally put aside their differences to advocate for relaxed capital rules, but as the Federal Reserve nears the end of a sweeping overhaul, an unexpected feud has emerged.

The Fed's proposed changes aim to make the capital surcharge on global systemically important US banks (GSIBs) more risk-sensitive. However, JPMorgan and Bank of America have expressed concerns that the tweak would benefit their commercial rivals Goldman Sachs and Morgan Stanley at the expense of their deposit-based business models.

JPMorgan estimated it would miss out on $13 billion in extra capital relief due to the funding change, while BofA would lose $9 billion. In contrast, Goldman and Morgan Stanley could gain an additional $1 billion to $2 billion each.