Understanding The Fed's Proposed Capital Surcharges For The Largest U.S. Banks

There are two key differences between the way the Fed seeks to impose capital surcharges on these banks compared to the FSB: firstly, the Fed also factors in the proportion of short-term wholesale lending used by a bank while calculating the surcharge. More importantly, the highest surcharge level stands at a much higher 4.5 percentage points in contrast with the 2.5 percentage points level suggested by the FSB.