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Fed to Cut Big Banks’ Capital Hike in Half in Sweeping Overhaul

Fed to Cut Big Banks’ Capital Hike in Half in Sweeping Overhaul


US regulators will make sweeping changes to their bank-capital rules proposal, cutting the expected impact to the biggest banks by half and exempting smaller lenders from large portions of the measure, a top Federal Reserve official said.

The proposed revisions to be previewed by Fed Vice Chair for Supervision Michael Barr in a speech Tuesday would roughly cut in half the 19% capital hike that regulators had planned for eight of the biggest US banks. Those lenders, including Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co., would now face a 9% increase in the capital they must hold as a cushion against financial shocks.



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