U.S. Stock Movement | Bank stocks rise broadly, Goldman Sachs up over 3%
On Friday, U.S. bank stocks rose broadly, with Goldman Sachs and Morgan Stanley up over 3%. JPMorgan Chase and Citigroup rose over 2%, and Bank of America increased nearly 2%. The Federal Reserve presented a revised proposal for the Basel III Accord to regulators, which is expected to significantly relax the capital requirements for large banks, reducing the capital increase to between 3% and 7%. Morgan Stanley anticipates that by the second quarter of 2025, large banks will have $157 billion in excess capital, and their capital adequacy may continue to improve
According to Zhitong Finance APP, on Friday, U.S. bank stocks rose broadly. As of the time of writing, Goldman Sachs (GS.US) and Morgan Stanley (MS.US) were up over 3%, JPMorgan Chase (JPM.US) and Citigroup (C.US) were up over 2%, and Bank of America (BAC.US) was up nearly 2%. In terms of news, recent reports indicate that the Federal Reserve has presented a revised proposal for the final rules of the Basel III Accord to other U.S. regulatory agencies, which would significantly relax capital requirements for large Wall Street banks. It is reported that some officials estimate that the new proposal will reduce the overall capital increase for most large banks to between 3% and 7%, a figure far lower than the 19% increase proposed in 2023 and also below the 9% increase suggested in last year's compromise version. Banks with larger trading business portfolios may see even smaller capital increases or even declines.
Morgan Stanley stated that by the second quarter of 2025, large banks will collectively have $157 billion in excess capital. Rough calculations suggest that even if capital requirements rise by 7%, large banks will still retain at least $146 billion in excess capital. With further adjustments to subsequent capital rules (such as GSIB surcharges, SLR, and stress test transparency), banks' capital adequacy may continue to improve. Morgan Stanley added that for banks holding large trading investment portfolios, the reduction in capital requirements is most beneficial for Goldman Sachs, which it covers
