WASHINGTON–The Federal Reserve has shown other U.S. regulators the outlines of a revised plan that would dramatically relax a Biden-era bank capital proposal for Wall Street’s largest lenders, according to a new report.
Citing people familiar with the matter, Bloomberg News reported that some officials have calculated the terms of the Fed’s plan would lead to an increase of between about 3% and 7% in total capital for most big banks, the report said.
That outcome is far below the 19% raise that the industry had faced in 2023 under the draft Basel capital rules, which proposed changes to how big banks gauge lending and trading risks, Reuters noted, adding
The Federal Reserve declined to comment on the report. Reuters said it could not independently verify the report.
Some Pushback
Earlier this month, Reuters reported citing senior industry executives that as President Donald Trump’s regulators revamp bank rules, big lenders expect their capital requirements could fall.
The “Basel III” standard was agreed after the 2007-09 global financial crisis and includes numerous capital, leverage and liquidity requirements.
“The proposal had sparked unprecedented pushback from Wall Street banks who argued it would tighten lending and ripple into other business lines,” Reuters stated. “Banks have been lobbying hard with regulators to water down the draft rules.”
