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Final Basel 3 for BOFA?


wescobrk
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What is the likely Basel 3 final required rate of assets? I know there is some uncertainty on the final number but is it 10% roughly with SIFI charge of total assets? BOFA has about $1.2 trillion I believe in risk weighted assets. Tangible book in June was $158 billion. Just curious of a rough range of about much more capital they have to build?

Thanks.

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Under existing Basel 3 requirements, they are already above what is needed.  There is some discussion regarding whether they tighten rules even further against risk-weighted assets, in particular derivatives, but that has not been finalized yet.  If tighter requirements are needed, they have until 2019 to build the capital, so they don't need to hit that level anytime soon.  Over the next couple of years, they could shrink their book further, sell off some more assets or even build capital through existing cash flows.  Cheers!

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