Fed Eases Post-Crisis Rules for Domestic, Foreign Banks - ABI

The U.S. Federal Reserve yesterday unveiled a final package of rules easing capital and liquidity requirements for domestic U.S. and foreign banks that was originally introduced following the 2007-2009 global financial crisis, Reuters reported. The changes, which should reduce the compliance burden and free up funds for U.S. Bancorp, Capital One and PNC Financial, among others, mark another win for the industry after the Fed also relaxed rules on derivatives trades and banks’ annual health checks. Yesterday’s package stems from bipartisan legislation passed by Congress in May 2018 that rewrote parts of the 2010 Dodd-Frank financial reform law. That 2018 law ordered the Fed to reduce the burden on community and regional lenders, but progressive Democrats and consumer groups are likely to criticize the central bank for giving larger banks too much leeway with its final changes. Randal Quarles, the Fed’s top regulatory official, said the package allows the Fed to more closely tie stricter rules to risks and retains the toughest requirements for the largest firms. ABI

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