Finance
Fed to Cut Biggest Banks’ Capital Hike by Half in Overhaul
- Biggest banks to face 9% capital jump after major revisions
- Fed’s Barr previews changes to bank-capital overhaul in speech
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US regulators will make extensive changes to their bank-capital rules proposal, cutting the expected impact to the largest banks by half and exempting smaller lenders from large portions of the measure, a top Federal Reserve official said.
The proposed revisions previewed Tuesday by Fed Vice Chair for Supervision Michael Barr would roughly slice in half the 19% capital hike that regulators had planned for the eight biggest US banks. Those lenders, including Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co., would now face a 9% increase in the capital they must hold as a cushion against financial shocks.