JPMorgan's $2B Loss Weakens Banks' Anti-Capital Case

Law360, New York (June 5, 2012, 7:33 PM EDT) -- With the Federal Reserve set to release rules on Thursday requiring banks to increase their capital levels, analysts say that the recent $2 billion trading loss at JPMorgan Chase & Co. will make it harder for banks to argue that holding more money in reserve will slow down their lending activities.

The Fed will unveil its long-awaited rules for how U.S. banks will comply with the increased capital standards required under the Basel III banking accords, an international agreement reached in the wake of the 2008...
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