The Cost of New Banking Regulation: $70.2 Billion
By Saabira Chaudhuri
New regulation stemming from the financial crisis has cost the six largest U.S. banks $70.2 billion as of the end of last year, according to a new study. Between the end of last year and the end of 2007, regulatory costs rose by more than 100%–or $35.5 billion– for Bank of America Corp. Citigroup Inc., Goldman Sachs Group Inc., J.P. Morgan Chase & Co., Morgan Stanley and Wells Fargo & Co., according to data from policy-analysis firm Federal Financial Analytics Inc. The costs come from a mix of requirements that are specific to these banks, such particular capital surcharges, and those that apply to banks with assets over $50 billion but impose the largest cost on the six biggest banks due to their size or risk, Federal Financial Analytics found.