Federal Reserve unveils toned-down banking regulation in victory for Wall Street

Published On Sep 10, 2024, 10:00 AM

The Federal Reserve has revised its proposed banking regulations, cutting the increase in capital requirements for major banks from an originally proposed 19% to 9%. This change, referred to as the Basel Endgame, comes in response to feedback from banks and business groups who argued that higher capital requirements could hinder lending and economic growth. As a result, regional banks and larger financial institutions will face less stringent requirements. However, some lawmakers have criticized this decision as a setback for financial stability.