"Too big to fail" is likely to prove a costly epithet for the world's biggest banks as regulators demand they increase debt securities to cover losses should they collapse.
The shortfall facing lenders from JPMorgan Chase & Co. to HSBC Holdings Plc could be as much as US$870 billion, according to estimates from AllianceBernstein Ltd., or as little as $237 billion forecast by Barclays Plc.
The range is so wide because proposals from the Basel-based Financial Stability Board (FSB) outline various possibilities for the amount lenders need to have available as a portion of risk-weighted assets. With those holdings in excess of $21 trillion at the lenders most directly affected, small changes to assumptions translate into big numbers.
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