Federal Reserve considers tweaking GSIB surcharge for U.S.'s biggest banks (NYSE:JPM)

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The Federal Reserve is reportedly weighing a rule change that could reduce the amount of money the U.S.'s eight largest banks are required to set aside to bolster their reserves to weather a major downturn.
The move would save the banks billions of dollars, all together, and notch a win for the industry by easing capital requirements, Reuters reported on Tuesday, citing four people with knowledge of the matter.
The change applies to how the regulator calculates an extra layer of capital imposed at the U.S.'s global systemically important banks, or GSIBs, for their GSIB surcharge, which was introduced in 2015 in reaction to the 2008 financial crisis.
The eight U.S. banks subject to the GSIB surcharge are JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Wells Fargo (NYSE:WFC), BNY Mellon (NYSE:BK), and State Street (NYSE:STT).
The Fed is considering updating coefficients used in calculating the surcharge to take into account economic growth to more accurately reflect the size of the banks relative to the global economy, Reuters said, citing the four people.

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