Bank of America and other major US banks are publicly disputing the Federal Reserve's proposed revision to the GSIB capital surcharge for large institutions. The clash centers on how the updated surcharge would affect required capital buffers for the biggest banks and the rules that govern those calculations. Bank executives warn that higher required capital could influence lending activity and overall balance sheet use across the largest US lenders. The disagreement has opened a rare rift among top US banks over core regulatory policy, drawing close attention from regulators, investors and policymakers. Bank of America, with a market cap of about $435.2 billion, is one of the largest US banks, and changes to GSIB capital rules directly affect how it allocates balance sheet capacity across its lending, deposit, and capital markets services.
Bank of America CorpBank of America disputes Fed's proposed GSIB capital surcharge revision, which could increase required capital and constrain lending and balance sheet use.
