Shares of major U.S. banks rose modestly on Monday. Federal Reserve It has outlined changes to other U.S. regulators that could ease the burden of bank capital reform. Wall Street The lenders issued a statement on the same day, according to a person familiar with the matter.
The amendments would roll back key parts of the landmark proposals, including some that could have a major impact on large banks with large trading operations. Bloomberg reported that a source familiar with the matter said this on the condition of anonymity.
The Fed document did not provide updated estimates of how much capital big banks would have to add to protect against a financial shock, but initial calculations suggest the proposed changes could slow the increase to as little as 5 percent, the people said.
The original proposal called for an overall 16% increase.
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Such a retreat would be a victory for Wall Street banks, which have waged an intense campaign since the proposal was announced last July.
Chairman of the Federal Reserve System Jerome Powell Vice Chairman for Supervision, Federal Reserve Board (FRB) Michael BarrThe man believed to be the original architect of the plans said the proposals involve “far-reaching and significant changes”. According to Bloomberg.
U.S. officials have yet to reach an agreement, and it is unclear whether the amendment can be passed before the November presidential election.
key Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance CorporationFDIC officials were prepared to back out of a key part of the proposal – market risk – but have privately indicated they would vote against it if they deemed the capital increases too low. Some people said.
A Fed spokesman said no decisions have been made yet about timing, modalities or content. The Fed is not targeting a specific scope but is rather focused on the content of potential revisions, he said.
The FDIC and OCC declined to comment.
Bank Stock Trends: JPMorgan Chase JPM It rose 1.31% on Monday, Bank of America Blood alcohol content Improved by 1.34% Citigroup C It rose 2.25%. Wells Fargo World Economic Forum It rose 1.57% on Monday.
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