Global regulators this week put JPMorgan Chase & Co. and HSBC Holdings Plc at the pinnacle of a list of 29 too-big-to-fail banks that face tougher capital rules than other lenders, and the companies were also handed a map to plot their descent, Bloomberg News reported today. For the first time since it started compiling a roster of lenders whose collapse would threaten the global economy, the Basel Committee on Banking Supervision also disclosed the thresholds for how it determined the level of extra capital requirements that such banks should face. The move will enable lenders to find ways to move down to a lower surcharge category or exit the list altogether. The capital surcharges for globally systemic lenders add an extra layer of safety beyond beefed-up standards known as Basel III that emerged in the wake of the 2008 collapse of Lehman Brothers Holdings Inc. Regulators said the additional buffers were vital to protect taxpayers and prevent crises from cascading through the financial system.
