Regulators are proposing sweeping changes that would allow the nation’s largest banks to hold significantly less capital, marking a major win for Wall Street and a sharp reversal from stricter Biden-era plans, The Wall Street Journal writes.
The proposal would reduce capital requirements by about 2.4%, or roughly $20 billion, with officials arguing the shift will boost lending and improve banks’ competitiveness against private-credit firms.
Backed by Trump-appointed regulators, the changes aim to simplify rules tied to the Basel accords while easing additional capital buffers across banks of all sizes. Supporters say the move could encourage more traditional lending, including mortgages and business loans.
Critics warn the rollback could weaken financial safeguards put in place after the 2008 crisis. The proposal now enters a 60-day comment period, setting up a broader debate over how far regulators should go in loosening oversight.
Read the full story from The Wall Street Journal.
