Global Capital Surcharge May Affect 26 Firms, Memo Says
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As many as 26 financial firms could be forced to hold extra capital to avoid collapses that would threaten global financial stability, according to a participant at a meeting of the Financial Stability Board last week.
“We understand that it is likely that the number will be in the 15-26 range,” Tim Ryan, chief executive officer of the Global Financial Markets Association, a finance-industry group, said in a memo sent to board members following the meeting in Frankfurt. “Though a capital buffer is likely, the structure, amount and implementation timeline is still undecided,” Ryan said in the memo, obtained by Bloomberg News.