The Fed Needs a Bit More Fight On Tougher Bank Rules
JPMorgan and other lenders have stirred up fears about tougher capital rules. Regulators shouldn’t back down completely.
What rules?
Sources: Bloomberg
Big US banks look to be getting their way in the fight over tougher capital rules. The Federal Reserve is talking to other regulators about changes to the updated standards that were proposed last July, according to Bloomberg News, which could mean capital demands increasing by less than one-third of what was originally envisaged.
Such a climbdown would be galling to campaigners for safer banks, but a boost to shareholders who want a restart of their generous stock buybacks. This has been a bruising battle for the regulators, and with a presidential election looming, the worry is they will concede too much ground to the industry and the fears it has stirred up just to get an agreement done.