Fed floats smaller capital hikes for big banks, Bloomberg reports

The Federal Reserve has shown other U.S. regulators a revised plan that would dramatically relax a Biden-era bank capital proposal for the nation’s largest lenders, people familiar with the matter told Bloomberg’s Katanga Johnson. Officials have calculated that the terms of the Fed’s plan would lead to an increase of between about 3% and 7% in aggregate for most big banks, which would be lower than the 19% increase in the 2023 proposal and the 9% bump floated in a compromise version last year, the report noted. Some of the largest publicly traded U.S. banks include Bank of America (BAC), Citi (C), Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS), U.S. Bancorp (USB) and Wells Fargo (WFC).