April 13 Wells Fargo & Co poses an
increasingly serious threat to the global financial system,
while risks posed by other large U.S. banks have changed
relatively little, according to an annual report released
Wednesday by a U.S. government research group charged with
monitoring such threats.
The Office of Financial Research (OFR), a financial
stability watchdog, studied the systemic importance of the
world’s largest banks using 2014 data from the Basel Committee
on Banking Supervision.
It then assigned a score to each bank based on factors
including size, complexity, interconnectedness and
cross-jurisdictional activity, as well as how easily the
products they offer can be provided by competitors.
JPMorgan Chase & Co, Citigroup Inc and Bank of
America Corp, Goldman Sachs Group Inc and Morgan
Stanley are still riskier than Wells Fargo, as they were
a year earlier, but their scores were little changed. Wells
Fargo’s score, by contrast, rose 18 percent to 202.6. JPMorgan
has the highest score at 494.7.
Starting this year, regulators will use the OFR’s analysis
to determine capital requirements for the banks studied in the
A Wells Fargo spokesman would not immediately comment.
(Reporting by Dan Freed in New York; Edited by Lauren Tara
LaCapra and Steve Orlofsky)
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