US banks in $150bn capital shortfall

The new Basel III banking rules will leave the largest US banks short of between $100bn and $150bn in equity capital.

Citing research from Barclays Capital, the Financial Times reports 90% of the shortfall is concentrated in the top six banks. The study suggests the banks will need to hold top quality capital equal to 8% of total assets, which is a one point cushion above the global minimum of 7% set out in the Basel rules in September. "These shortfalls are entirely manageable. The more difficult question is what affect the new rules will have on the cost and availability of credit and bank profitability," BarCap's Tom McGuire told the FT.