Wall Street Banks Clash Over Capital Rule Tweak Worth Billions

Wall Street's most powerful banks are at odds over a tweak to capital rules that could save them billions of dollars.

The Federal Reserve is finalizing its overhaul of capital requirements, and JPMorgan, Bank of America, Goldman Sachs, and Morgan Stanley are feuding over the change.

The issue centers on a capital surcharge imposed on global systemically important U.S. banks, or GSIBs.

While the proposal reduces overall capital requirements, it benefits commercial rivals more reliant on short-term wholesale funding.

JPMorgan and Bank of America executives see the change as at odds with President Trump's regulators' argument for capital relief to boost lending.