Michael Barr, Vice-Chair for Supervision of the US Federal Reserve Board, has announced that the regulator would be substantially reducing the size of its proposed increase to regulatory capital requirements.
When the new capital requirements regime — referred to as the "Basel Endgame" — was introduced in July 2023, it proposed an increase in the capital big banks are required to hold of up to 19%. Earlier this week, Michael Barr, who has served as the public face of the "Basel Endgame" proposal, announced a revised plan that would scale back the capital increase to 9%. The new rules would also only apply to banks with over $250 billion in assets, a change from the more aggressive $100 billion threshold included in the original proposal.
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