Fed’s Powell Says Significant Changes to Bank Capital Plan Likely
- Weakening of July plan would be major win for Wall Street
- Banks have waged fierce lobbying campaign against proposal
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Federal Reserve Chair Jerome Powell said that US regulators are likely to significantly change their plan to require large lenders to hold more capital — a move that would mark a major win for Wall Street giants.
“I do expect there will be broad and material changes to the proposal,” Powell told lawmakers on the House Financial Services Committee on Wednesday. He added that no decisions had been made, but that it was possible regulators could scrap the plan floated last July and propose a new version. “It’s a very plausible option,” he said.