Wall Street Faces Higher Capital Demands Under Fed Proposal
- Regulator issues ‘stress capital buffer’ as simpler approach
- Proposal from Trump appointees originated with Obama official
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Wall Street banks could face higher capital hurdles under a Federal Reserve proposal that would mark the most significant rewrite of requirements put in place after the 2008 financial crisis.
The new “stress capital buffer” announced by the Fed Tuesday is meant to streamline competing regulatory demands on lenders and better tailor standards to each bank’s specific business. The central bank’s proposal would also relax parts of its annual stress tests.