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Just in Time Stimulus: Fed Proposes Looser Rules for Large U.S. Banks

• https://moneymaven.io, by Mike Mish Shedlock

The Wall Street Journal reports Fed Proposes Looser Rules for Large U.S. Banks

The Federal Reserve announced one of the most significant rollbacks of bank rules since President Trump took office with a proposal for looser capital and liquidity requirements for large U.S. lenders.

The changes would affect large U.S. lenders including U.S. Bancorp , Capital One Financial Corp. , and more than a dozen others. The largest U.S. banks, including JPMorgan Chase & Co., wouldn't see any significant rule changes, and some in the industry thought the proposal didn't go far enough.

The draft proposal, approved by a 3-1 vote at a Wednesday meeting of the Fed's governing board, would divide big banks into four categories based on their size and other risk factors. Regional lenders would be either entirely released from certain capital and liquidity requirements, or see those requirements reduced. They could also, in some cases, be subject to less frequent stress tests.

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