Goldman could face higher capital charge under Barr proposal

Plans to prevent G-Sib score window dressing would penalise all US systemic banks bar Citi

Seven of the eight too-big-to-fail US banks could see their systemic risk scores rise under a proposal outlined by the Federal Reserve’s vice-chair for supervision, Michael Barr, on July 10, with Goldman Sachs at risk of attracting a higher Common Equity Tier 1 capital add-on.

The proposed change would measure the systemic footprint of large banks on an average basis over the full year rather than in a single snapshot once every 12 months, as the current framework prescribes.

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