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U.S. Banks to Face Tougher Leverage Caps Than Competitors

The biggest U.S. bank holding companies will need to round up as much as $68 billion more in loss-absorbing capital under supplemental leverage ratio rules adopted by regulators in Washington.

Eight lenders, including JPMorgan Chase & Co. and Bank of America Corp., face greater restrictions on borrowing power than their overseas competitors as they meet a demand to hold capital equal to at least 5 percent of total assets. The rules approved yesterday to curtail financial-system risk surpass the 3 percent minimum set in a global agreement by the Basel Committee on Banking Supervision.