Federal Reserve Chair Jerome Powell has indicated that the central bank may significantly alter its proposed capital requirements for large lenders, a move that could mark a substantial regulatory victory for Wall Street giants. During his testimony before the House Financial Services Committee, Powell mentioned that a reproposal of the Basel III Endgame is a 'very plausible option,' signaling a potential shift in the U.S. regulators' approach to enforcing more stringent capital holdings. This development follows a period of political blowback against the Fed's initial plan. Powell's comments suggest that the Fed is open to reconsidering the proposals in light of feedback, aiming for 'broad and material changes.' Critics, including Senator Elizabeth Warren, have expressed concerns about the implications of such changes, while others in the banking sector anticipate a more favorable regulatory environment.
Jerome Powell seems ready to hand a victory to big banks, saying "broad and material" changes are coming to key regulation. https://t.co/FOvzcaKjA5
"Elizabeth Warren's comments [to Fed Chair Powell] are dramatic," Whalen Global Advisors chairman Chris Whalen says. "She doesn't really understand banking. She pretends to and a lot of the things she says she knows are wrong but she says them anyway." Full comments: https://t.co/Dmx1z3iFIe
Regulatory proposal criticized by banks will be revised by end of year, Fed’s Jerome Powell says https://t.co/rENejnHCpi
.@SenWarren doesn’t like “Material and broad changes” that Chair Powell wants to make on Basel 3 bank rules
.#WallStreet #banks will be relieved with what #FederalReserve Chair Powell just said about his willingness to redo the so-called "Basel lII End Game." The Chair reinforced the expectation he stated yesterday of "broad and material changes to the proposals." #economy #centalbanks
.#WallStreet #banks will be relieved with what #FederalReserve Chair Powell just said about his willingness to redo the so-called "Base lII End Game." The Chair reinforced the expectation he stated yesterday of "broad and material changes to the proposals" #economy #centalbanks
Wall Street gets win as Powell floats redoing bank capital plan https://t.co/fJ0fbqyyTD via @business
Wall Street is on the cusp of a regulatory victory after Fed Chair Powell signaled officials would likely scale back plans to make them hold more capital https://t.co/9U6UbPL5Da
Wall Street banks are on the cusp of a sweeping regulatory victory after Fed Chair Jerome Powell signaled officials would scale back plans to make them hold more capital https://t.co/3J3wQKnFZz
My comment letter, Bankers New Clothes book and 2010 letter of 20 academics urge “broad and material changes” to poorly designed Basel 3 rules (much stronger and more meaningful leverage requirements). I fear that’s not what chair Powell has in mind. https://t.co/gHctvXhHL4
***Powell Hints at Basel Reproposal*** @markets
Fed Chair Jerome Powell said that US regulators are likely to significantly change their plan to require large lenders to hold more capital — a major win for Wall Street giants https://t.co/LmJMiCnmdx
I guess in hindsight, Powell's comments on material changes to Basel "endgame" is not a surprise given the political blowback from all fronts to the Fed's plan. From January: https://t.co/8mPfVDcn64
Got quid pro quo? @federalreserve Chair Jerome Powell said the central bank is likely to significantly change its plan to require large lenders to hold more capital. @business
Fed Chair Jerome Powell says reproposal of Basel III Endgame is a "very plausible option," during his testimony before the House Financial Services Committee. "If, when we get to that point, that turns out to be the appropriate thing, we won't hesitate to do it." https://t.co/Cl8TLQThzK
Fed's Powell: We Haven't Made Any Decisions Yet On Proposed Capital Rules - Expect Broad Material Changes To Basel 3 Proposal