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Investing.com -- The Federal Reserve has outlined a revised bank capital proposal that could significantly reduce the regulatory burden on major Wall Street banks compared to earlier Biden-era plans, according to a report from Bloomberg News, citing sources familiar with the matter.
The new plan would result in capital increases of approximately 3% to 7% for most large banks, substantially lower than the 19% increase proposed in 2023 and the 9% increase suggested in a compromise version last year.
Banks with substantial trading operations might face even smaller increases or potentially see their capital requirements decrease under the revised terms.
The Federal Reserve has already shared the framework of this modified approach with other U.S. regulatory agencies, indicating a potential shift in regulatory direction for the banking sector.
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