Trending Now - Federal Reserve Considers Easing Capital Rules Amid Economic Woes
WHO:
Dennis Kelleher, president of Better Markets, stated that the proposals are a "victory for Wall Street lobbying."
Michael Barr, Fed Governor, was the lone dissenting voice against the new rules.
Michelle Bowman, Fed Vice Chair for Supervision, was appointed by Trump.
Elizabeth Warren, Democratic senator and ranking member of the Senate banking committee
Jamie Dimon, CEO of JPMorgan
Trump administration
Federal Reserve
Federal Deposit Insurance Corporation (FDIC)
Office of the Comptroller of the Currency
Dennis Kelleher, president of Better Markets
Michael Barr, Fed Governor
Bartlett Naylor, economist for Public Citizen
Matt Stoller, anti-monopoly researcher and author
WHAT:
The proposals would return Wall Street banks' capital requirements to "the irresponsibly low 2007 levels."
The new rules would allow large banks to hold nearly 5% less capital on average.
The changes are described as some of the biggest since the 2008 financial crisis.
The Federal Reserve plans to lower capital requirements for the largest banks by 4.8%.
Larger regional banks like PNC will see their requirements drop by 5.2%.
Banks with less than $100 billion in assets will have their requirements reduced by 7.7%.
Warren stated that the proposal will lead to "bigger payouts for megabank shareholders and executives, less lending to small businesses and families, and a banking system even more prone to devastating crashes and taxpayer bailouts."
The Trump administration and Federal Reserve proposed to reduce capital requirements for large banks by nearly 5%.
The proposals would return Wall Street banks' capital requirements to levels seen in 2007, prior to the 2008 financial crash.
The new deregulatory package will undergo a 90-day public comment period before finalization.
The proposals could potentially unleash billions of dollars for lending, share buybacks, and dividends.
WHERE:
United States
WHEN:
The proposals were unveiled on Thursday, March 19th, 2026.
The public comment period will last for 90 days following the announcement.
WHY:
Kelleher criticized the proposals as "counterproductive, shortsighted, and wrongheaded rulemaking."
Barr warned that the proposals would "harm the resilience of banks and the US financial system."
Warren described the banking industry's actions as a "multi-year lobbying assault to gut modest safeguards on Wall Street risk-taking."
The proposals are seen as a response to aggressive lobbying from Wall Street for less stringent regulations following the Great Recession.
Critics argue that the changes will drain lending from Main Street families and benefit the wealthy.
HOW:
The initiative is a major revision to Basel III, global banking regulations established after the 2008 financial crisis.
The proposals were developed by the Federal Reserve, FDIC, and Office of the Comptroller of the Currency.
The initiative is a major revision to Basel III, global banking regulations established after the 2008 financial crisis.
The proposals were developed by the Federal Reserve, FDIC, and Office of the Comptroller of the Currency.
The effort to ease capital requirements was led by Fed Vice Chair for Supervision Michelle Bowman, a Trump appointee.
(UPDATED March 20, 2026 15:12 UTC)
Today, the Federal Reserve, along with the FDIC and the Office of the Comptroller of the Currency, announced proposals that would significantly reduce capital requirements for Wall Street banks, bringing them back to levels seen before the 2008 financial crisis. Dennis Kelleher, president of Better Markets, criticized the changes as a "victory for Wall Street lobbying," while Michael Barr, the lone dissenting voice among Fed officials, warned that these new rules could undermine the resilience of banks and the broader U.S. financial system. The proposals would allow large banks to hold nearly 5% less capital on average, marking some of the most substantial regulatory changes since the financial crisis.
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(UPDATED March 20, 2026 13:21 UTC)
Today, the Federal Reserve announced plans to lower capital requirements for the largest banks by 4.8%, with larger regional banks like PNC seeing a 5.2% reduction and banks with less than $100 billion in assets facing a 7.7% cut. Democratic Senator Elizabeth Warren criticized the proposal, arguing it would result in bigger payouts for megabank shareholders while reducing lending to small businesses and families, ultimately making the banking system more vulnerable to crises. This initiative marks a significant revision to Basel III, the global banking regulations put in place after the 2008 financial crisis, which Warren claims is the result of a prolonged lobbying effort by the banking industry to weaken essential safeguards.
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(UPDATED March 20, 2026 07:21 UTC)
On Thursday, March 19, 2026, the Trump administration and the Federal Reserve unveiled a proposal to reduce capital requirements for large banks by nearly 5%, bringing them back to levels seen before the 2008 financial crash. This deregulatory package, developed by the Federal Reserve, FDIC, and Office of the Comptroller of the Currency, will enter a 90-day public comment period, during which critics warn it could drain lending from Main Street families while benefiting the wealthy. The push for these changes is largely seen as a response to aggressive lobbying from Wall Street for less stringent regulations following the Great Recession.