Mar. 20 at 5:51 PM
I see you
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Federal Reserve, in a 6-1 vote, releases proposal for lower bank capital req'ts
Large banks would see capital fall on net by 4.8%, while other large banks — those with assets b/n
$100B-
$700B would see their capital req'ts drop by 5.2%. Banks w/ less than
$100B in assets would see a 7.8% reduction
Prior Basel proposals during the Biden admin envisioned estimated hikes of first up to 20%, then 9%, for the largest banks.
After the proposals are implemented, the largest banks in the US would still hold in excess of
$800B in capital to guard against downturns & capital levels would still be twice as much as before financial crisis.
The looser rules could help banks win back business from private credit & other non-bank lenders
