Wall Street Frets Fed Proposal Will Become $550 Billion Headache
- New debt issuance may lift bank funding costs, hurt investors
- Lobbyists pushing regulators to change proposed rules
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A Federal Reserve proposal to make the banking system safer may end up forcing the biggest U.S. banks, including JPMorgan Chase & Co. and Citigroup Inc. to raise as much as $550 billion more in the bond market by 2019, analysts and Wall Street lobbyists warn.
That estimate from research firm CreditSights Inc. would be equal to more than four times the amount of bonds the Fed forecasted in October that the financial companies would have to sell to meet the requirements.