US bank regulators to unveil long-awaited capital rule rewrite [View all]

Source: msn/Reuters

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WASHINGTON, March 19 (Reuters) - U.S. President Donald Trump's bank regulators are set to formally unveil softened new draft capital rules on Thursday, in a potential victory for Wall Street banks that could unleash billions of dollars for lending, share buybacks and dividends.

The "Basel" and related capital proposals are expected to modestly reduce the amount of money big banks must set aside for potential losses, Federal Reserve regulatory chief Michelle Bowman said last week, a stunning turnaround for an industry that had faced double-digit hikes under the original 2023 draft.

The Fed, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency are set to approve the Basel draft Thursday morning and begin soliciting feedback, kicking off another potentially frenetic round of industry lobbying as banks gain clarity over how they will fare versus their peers.

The overhaul follows a years-long Wall Street bank campaign to ease rules introduced after the 2008 financial crisis which they say are stifling the economy. Bowman said the changes would better calibrate requirements in line with risks, although critics say they will weaken financial system safeguards just as geopolitical and private credit risks are surging.

Read more: https://www.msn.com/en-us/money/markets/us-bank-regulators-to-unveil-long-awaited-capital-rule-rewrite/ar-AA1YYuYS