Barclays Capital: US banks need $115bn to meet Basel rules

19 August 2010

A Barclays Capital report has estimated that US banks only need half the capital they would have originally required under the Basel Committee on Banking Supervision rules following a rewrite last month.

Its study stated that the top 35 banks in the US should now be able to meet the requirements without having to raise substantial amounts of new equity, reports the Financial Times.

Under the changes made by the committee, the definition of what banks could class as tier one capital was widened and the amount of liquid assets they are required to keep was effectively made smaller.

Barclays Capital forecast that the 35 banks will have to raise a total of $115 billion in new equity or retained earnings under the revised measures, about half of the $225 billion that was estimated when a tougher draft of the rules came out in December 2009.

Earlier this month, an insider told the Wall Street Journal that Barclays Capital is currently looking to cut hundreds of back office support jobs as part of cost-saving measures.

By Gary Cooper

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