The Federal Reserve announces relaxed banking regulations, benefiting Wall Street.

• On Tuesday, a top Federal Reserve official announced modifications to proposed U.S. banking regulations, reducing the additional capital required by large institutions by roughly half.
• The Basel Endgame, introduced in July 2023, would have increased capital requirements for the world's largest banks by approximately 19%.
• The Fed, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corp. have agreed to resubmit their massive proposal with a more modest 9% increase to big bank capital, as per Fed vice chair for supervision Michael Barr's prepared remarks.

On Tuesday, a top Federal Reserve official announced modifications to a proposed set of U.S. banking regulations, reducing the extra capital that the largest institutions will have to maintain by approximately half.

The Basel Endgame, introduced in July 2023, would have increased capital requirements for the world's largest banks by approximately 19%.

The Fed, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corp. have agreed to resubmit a massive proposal with a more modest 9% increase to big bank capital, according to prepared remarks from Fed Vice Chair for Supervision Michael Barr.

""In light of the feedback we have received, we have decided to make changes to the proposals that will better balance the benefits and costs of increasing capital requirements," Barr stated in his remarks."

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