#FederalReserve #BankingRegulation #WallStreet
Federal Reserve Unveils Revised Banking Regulation, Boosting Wall Street Confidence
The Federal Reserve has announced significant revisions to its proposed banking regulations, significantly reducing the additional capital requirements for the nation's largest financial institutions. This move is seen as a major victory for Wall Street, as it eases the burden on major banks.
Initially introduced in July 2023, the Basel Endgame aimed to increase capital obligations for the world's largest banks by around 19%. However, after careful consideration and feedback, the Federal Reserve, the Office of the Comptroller of Currency, and the Federal Deposit Insurance Corporation have decided to submit a revised proposal. This revised framework suggests a more conservative increase of 9% for capital requirements among major banks.
Michael Barr, the Fed's Vice Chair for Supervision, stated that the revisions were necessary due to the benefits and drawbacks of increasing requirements. He emphasized that the goal is to make the proposals better, taking into account the feedback received.
This revised regulation is expected to boost confidence in the banking sector, as it reduces the financial burden on major institutions. The move is seen as a significant shift in the regulatory landscape, and its impact will be closely monitored by financial experts and investors alike.
Original Article: https://www.cnbc.com/2024/09/10/federal-reserve-unveils-new-banking-regulation-in-wall-street-victory.html
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