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," confirms the Wall Street Journal (Oct. 31, Tracy), "with a proposal for looser capital and liquidity requirements for large U.S. lenders." The changes would impact such big U.S. lenders as Capital One Financial Corp., U.S. Bancorp, and over a dozen others. The largest U.S. banks, most notably JPMorgan Chase & Co., would not see any significant rule changes. Approved by a 3-1 vote at a meeting of the central bank's governing board, the draft proposal would divide big banks into four categories based on their size and other risk factors. The proposals received mixed reviews from banks. While some trade groups applauded it, Bank Policy Institute President Greg Baer lamented that the proposal "does not do enough to tailor regulations."

NACD Directors Daily. November 1 2018.

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