Fed to ease capital rules for big banks, sparking debate
TL;DR
US Federal Reserve proposes easing Basel III-style capital rules, cutting risk-weighted requirements for megabanks by about 4.8%, regional banks by 5.2%, and smaller banks under $100B by 7.7%, a shift supporters say will boost growth while critics warn it weakens safeguards and increases bailout risk after SVB’s collapse.
- US moves to soften capital rules: ‘Big banks can declare mission accomplished’ The Guardian
- Big Banks Score Win Under New Plan to Loosen Capital Rules WSJ
- Wall Street bank capital to fall 4.8% under new rules, in win for industry Reuters
- Banking Regulators Prepare to Loosen Post-Crisis Capital Rules The New York Times
- US regulators slash Wall Street capital rules to boost bank lending Financial Times
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Read on The Guardian