Too-Big-to-Fail Banks Face Up to $870 Billion Capital Gap

The shortfall facing lenders from JPMorgan Chase & Co. (JPM) to HSBC Holdings Plc could be as much as $870 billion, according to estimates from AllianceBernstein Ltd., or as little as $237 billion forecast by Barclays Plc.

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The FSB, which consists of regulators and central bankers from around the world, will present its draft rules to a G-20 summit in Brisbane, Australia, next month. Its proposals call for 27 of the world's largest banks to hold loss-absorbing debt and equity equivalent to 16 percent to 20 percent of their risk-weighted assets to take losses in a failure, ensuring investors rather than taxpayers pick up the bill should a lender collapse.