Federal Reserve May Force Basel Rules on Big Banks

The Federal Reserve is likely to accept Basel rules that require banks (NYSEARCA:KBE) to hold more capital. Initial estimates place JPMorgan Chase (NYSE:JPM) at the top, saying it would have to hold 2.5% of extra capital in addition to the 7% base all institutions will be required to hold. Citigroup (NYSE:C) could also end up in the top category.

WSJ says, “The central bank’s decision to accept the rules laid out by regulators in Basel, Switzerland, as part of a draft proposal that could come before Christmas is a defeat for giant U.S. banks that argued the guidelines needn’t be so strict. They contended the Basel approach could prompt them to reduce lending and hurt the economy.”

Here’s how big bank stocks are trading on the news:

JPMorgan Chase & Co. (NYSE:JPM): JPM shares recently traded at $30.66, down $1.23, or 3.86%. They have traded in a 52-week range of $27.85 to $48.36. Volume today was 20,980,579 shares versus a 3-month average volume of 46,443,800 shares. The company’s trailing P/E is 6.53, while trailing earnings are $4.69 per share. Get the most recent company news and stock data here >>

Citigroup, Inc. (NYSE:C): C shares recently traded at $24.67, down $1.36, or 5.22%. They have traded in a 52-week range of $21.40 to $51.50. Volume today was 39,103,512 shares versus a 3-month average volume of 59,465,700 shares. The company’s trailing P/E is 6.58, while trailing earnings are $3.75 per share. Get the most recent company news and stock data here >>

Bank of America Corporation (NYSE:BAC): BAC shares recently traded at $5.03, down $0.17, or 3.27%. They have traded in a 52-week range of $5.03 to $15.31. Volume today was 147,439,092 shares versus a 3-month average volume of 270,976,000 shares. The company’s trailing earnings are $-0.31 per share. Get the most recent company news and stock data here >>

Wells Fargo & Company (NYSE:WFC): WFC shares recently traded at $25.45, down $0.53, or 2.04%. They have traded in a 52-week range of $22.58 to $34.25. Volume today was 10,478,455 shares versus a 3-month average volume of 39,742,400 shares. The company’s trailing P/E is 9.43, while trailing earnings are $2.70 per share. Get the most recent company news and stock data here >>

The Goldman Sachs Group, Inc. (NYSE:GS): GS shares recently traded at $87.50, down $2.6, or 2.89%. They have traded in a 52-week range of $84.27 to $175.34. Volume today was 4,284,869 shares versus a 3-month average volume of 8,089,650 shares. The company’s trailing P/E is 13.31, while trailing earnings are $6.57 per share. Get the most recent company news and stock data here >>