{
  "id": 3829904,
  "title": "Wall Street banks turn on each other as capital fight nears endgame",
  "url": "https://urgent.news/2026/08/27/wall-street-banks-turn-on-each-other-as-capital-fight-nears-endgame",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-27T21:00:00.000Z",
  "source": {
    "name": "Qatar Tribune Business",
    "slug": "qatar-tribune-business",
    "url": "https://www.qatar-tribune.com/article/250886/business/wall-street-banks-turn-on-each-other-as-capital-fight-nears-endgame"
  },
  "original_language": "en",
  "account": "After years of collaboration, Wall Street's major banks are now clashing over a proposed capital rule change that could affect billions of dollars. In March, the Federal Reserve proposed modifications to the capital surcharge it imposes on globally systemically important U.S. banks, or GSIBs. This change aims to make the surcharge more risk-sensitive by adjusting how it treats short-term wholesale funding, such as repurchase agreements and commercial paper, which may become scarce during market stress. JPMorgan and Bank of America, who have ample deposit funding, oppose the revision as it would benefit competitors Morgan Stanley and Goldman Sachs, who rely more on short-term wholesale funding. The banks estimate that JPMorgan would lose $13 billion and BofA would lose $9 billion in extra capital relief due to the change. Conversely, Goldman and Morgan Stanley would receive an additional $1 billion to $2 billion in relief. This discrepancy has led to infighting among the Wall Street giants, potentially hindering the Fed's effort to finalize the reforms before Democrats gain control of the House of Representatives. Both the Fed and the banks support the overall capital overhaul, but they seek to maximize their individual gains. JPMorgan and Bank of America have lobbied Fed officials to modify the proposed change, while Morgan Stanley and Goldman Sachs push for the Fed to finalize the change quickly. Fed Vice Chair for Supervision Michelle Bowman has reportedly instructed banks to limit feedback, as she wants to finalize the rule by year-end. The proposal, intended to strengthen the financial system following the 2007-2009 crisis, initially contained five systemic risk factors, but the Fed has now proposed scrapping the ratio of risk-weighted assets for short-term wholesale funding and measuring it as an absolute exposure instead. This change could benefit banks with high ratios, such as Morgan Stanley and Goldman Sachs.",
  "summary": "Agencies New York Wall Street’s most powerful banks fought side by side for years to relax capital rules, but with victory in sight, that alliance has fractured.As the Federal Rese...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Handelsblatt",
        "title": "Wall Street: Tech-Rally mit Substanz: Nvidia und Softwarekonzerne überzeugen",
        "url": "https://urgent.news/2026/08/27/wall-street-tech-rally-mit-substanz-nvidia-und-softwarekonzerne",
        "published": "2026-08-27T14:50:07.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}