US Bank Capital Rules Set for Rewrite

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U.S. banking regulators unveiled plans Thursday to ease capital requirements for the nation’s largest banks. The move, a potential victory for Wall Street, could free up billions of dollars for lending, share buybacks, and dividends. Federal Reserve officials are expected to vote to lower capital requirements – funds banks need to cover risky assets – by 4.8%. This would impact major financial institutions including JPMorgan Chase, Goldman Sachs, and Morgan Stanley. The changes represent some of the biggest adjustments to bank restrictions since the 2008 financial crisis. Bank lobbyists have long sought the streamlining and reduction of capital reserves needed to mitigate risks. These softened rules could unleash capital for banks, allowing for increased lending and returns to shareholders. The proposals were formally unveiled by regulators on Thursday.

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