Shares of big U.S. banks Goldman Sachs and Morgan Stanley dipped on Tuesday after a top Federal Reserve official's warning that the banks could soon face tougher funding restrictions.
Fed Governor Daniel Tarullo said at a U.S. Senate Banking Committee hearing that the biggest banks will face a capital surcharge in excess of requirements agreed to by international regulators, "noticeably so for some firms."
Tarullo said those firms also would face additional capital charges if they use risky short-term funding methods, indicating U.S. regulators intend to remain tough on large banks six years after the financial crisis.
Shares of Goldman Sachs were down 1.2 percent and Morgan Stanley was down 1.8 percent on Tuesday morning, after Tarullo's comments.
"The impact may be meaningful for some banks," analysts from Keefe, Bruyette and Woods said in a note on the remarks.
U.S. and foreign regulators want banks to fund themselves less through debt and more through shareholder equity, in hopes they will be better situated to weather future crises.
International officials have imposed numerous capital requirements on big banks such as JPMorgan Chase and Citigroup, including a surcharge for the largest firms of up to 3.5 percent of their assets.
So far, no banks face that highest surcharge of 3.5 percent. But Tarullo said U.S. regulators were prepared to impose surcharges at the higher end of that range.
"This measure might also create incentives for them to reduce their systemic footprint and risk profile," he said.
(Reporting by Emily Stephenson; Editing by Dan Grebler)
.RedTube Official App v1.6.8 Build 58 Patched (18 only) {Manans}.apk Forrest Gump [1994] DvDrip [Eng] Fresno Die Luge ao vivo no UOL Acustico Lucas Tavares (3 MB) mp3 House MD - Season 1-2-3-4-5-6-7 Complete 480p x264 - BoB Prince of Persia The Sands of Time 2010 720p BluRay DTS x264 CtrlHD (8 GB) Order and Chaos Online 2.3.0p APK DATA FILES /maudy/ayunda/tiba/tiba download Nankyoku Monogatari 1983 DVDRip FenixClub com (309 MB) Parker (2013) 720p Blu-Ray x264[Dual-Audio][English Hindi] - Mafiaking Ganesh Song Japun Tero Naam Remix DJ Solanki Safidon Haryana 9255547890 (4 MB) mp3 Pangngai Le ba Laloa Iwan Tompo (4 MB) mp3 Damaal Dumeel (2014) - Tamil Songs NERO 8 ULTRA 8.3.2.1 FULL KEYGEN.zip Hysni Klinaku Bini Ju Tupana Live (7 MB) mp3 The ring part 1 SL UNIT ATT Net ID Maker Coded By Buddhi (31 KB) Friday Night Lights Season 3 Episode 01 I Knew You When (488 MB) GTA IV ALL PATCHES CRACK XLIVE DLL FIX.rar The Fundamentals Of Diabetes Treatment Revealed (1 KB) Lovelysweet071 Kisapmata Elmo and others (2 MB) mp3 RadioFuzaka MTG VAMOS COMEÇAR VICTOR FALCaODJ E HENRIQUE FALCaODJ (4 MB) mp3 New Perspectives on Microsoft Excel 2010 - 1st Edition - Parsons - 0538742917 - PDF Boardwalk Empire Season 1, 2, 3 Extras BDRip DVDRip TSV Django Unchained 2012 TRUEFRENCH WWW SOFt 66 COM (1 GB) Yaariyan (2014) 3 Music Video Song 720p HD