Major U.S. banks, including Bank of America ($BAC), Citigroup ($C), JPMorgan Chase ($JPM), and Goldman Sachs ($GS), are calling on the Federal Reserve to revise its contentious bank capital rule. The banks argue that 'the big reason banks despise the Fed’s capital rule' is because it makes no sense. Federal Reserve Governor Michelle Bowman has stated that the proposal to impose tougher capital requirements has 'known deficiencies' and needs 'substantive changes' to avoid significant harm to the U.S. economy. Some Fed officials are considering adjustments, such as toggling the leverage ratio, which was temporarily exempted for Treasuries in 2020 to support the market.
A note to the Fed: Getting US bank capital rules right is far more important than getting them done, @PaulJDavies writes https://t.co/9CZtddsWja via @opinion
A note to the Fed: Getting US bank capital rules right is far more important than getting them done, @PaulJDavies writes https://t.co/YspC9pxmUY
Fed’s Michelle Bowman talks up compromise as comments on bank capital requirements roll in https://t.co/J9XGYAl618
Fed's Bowman says regulators can compromise on bank capital plan with 'substantive changes' https://t.co/lfD0OdFMq0 https://t.co/wedXH9z7qF
Even some Fed officials are now questioning the Fed's new bank capital rules https://t.co/R2XJBSVb1u by @Jenniferisms
Bowman thinking about toggling the leverage ratio to support Treasury market. Recall, Fed temporarily exempted Treasuries from leverage ratio in 2020 to support market. A change would make Tsy more attractive to banks. https://t.co/aoyVUQw0Vc
The Path Forward for Bank Capital Reform https://t.co/u5BXHh1iuk via @FederalReserve
Federal Reserve Governor Michelle Bowman said the central bank’s controversial proposal to boost bank capital needs “substantive changes.” https://t.co/HkCvBQE7yY
⚠️ FED'S BOWMAN SAYS REGULATORS CAN COMPROMISE ON BANK CAPITAL PLAN WITH 'SUBSTANTIVE CHANGES' (Reuters) Federal Reserve Governor Michelle Bowman said on Wednesday a proposed plan by regulators to hike bank capital requirements has "known deficiencies," but is optimistic… https://t.co/87VRsy9cCP
🔴 FED'S BOWMAN - THE PATH FORWARD FOR BANK CAPITAL REFORM https://t.co/A4bi9Y6hID
🔴 FED'S BOWMAN: I AM CAUTIOUSLY OPTIMISTIC THAT POLICYMAKERS CAN STRIKE REASONABLE COMPROMISE ON BANK CAPITAL RULE-WRITING.
🔴 FED'S BOWMAN: IMPOSING TOUGHER CAPITAL REQUIREMENTS AS PROPOSED COULD RESULT IN SIGNIFICANT HARM TO THE US ECONOMY.
🔴 FED'S BOWMAN: THE PROPOSAL TO HIKE BANK CAPITAL REQUIREMENTS NEEDS SUBSTANTIVE CHANGES TO ADDRESS KNOWN DEFICIENCIES.
"The big reason banks despise the Fed’s capital rule" is because the rules make no sense.... @politico
$BAC $C $JPM $GS Big US banks to call on Fed to rewrite contentious bank capital rule - Reuters https://t.co/ygEGbVgegd
Big US banks to call on Fed to rewrite contentious bank capital rule https://t.co/kvf0Ffaje8 https://t.co/w306NgPQU5