After Fierce Lobbying, Regulators Soften Proposed Rules on Banks
Published On Sep 10, 2024, 11:03 AM
The Federal Reserve has eased proposed capital requirements for banks after facing significant opposition from the industry. Initially aimed at increasing bank stability, the revised rules reduce the capital reserve requirements especially for midsize banks and significantly lower requirements for larger institutions. This shift is intended to enable banks to lend more freely, especially to low-income borrowers, amid concerns that stricter regulations could inhibit lending capacity.
Stock Forecasts
JPM
Positive
These changes to capital requirements are likely to bolster the banking sector's lending capabilities, which could enhance profit margins. The easing of regulations may potentially lead to increased stock prices for major banks, particularly those affected by these new guidelines.
BAC
Positive
The less stringent capital requirements might improve overall market sentiment towards banking stocks. Investors may view this as a move that could stabilize sectors gaining from increased lending activities.
Related News
JPMorgan touts 'soft landing' possibility after better-than-feared earnings
Oct 11, 2024, 11:03 AM
Profits at JPMorgan and Wells Fargo both fell from the year-ago period, but those declines were less than what analysts expected.
Big Banks Open Their Books for First Test After Rate Cuts
Oct 11, 2024, 8:11 AM
Profits fell at JPMorgan and Wells Fargo, but the lenders reported results that were largely better than had been expected, a sign that the economy remained solid.
Wall Street Profits Surge Despite Questions About the Economy
Oct 11, 2024, 7:48 AM
JPMorgan Chase, Wells Fargo and BlackRock reported strong quarterly results to kick off earnings season, but concerns linger about the strength of the consumer.