Fed Floats Plan With Much Smaller Capital Hikes for Big Banks

The Federal Reserve has shown other US regulators the outlines of a revised plan that would dramatically relax a Biden-era bank capital proposal for Wall Street’s largest lenders, according to people familiar with the matter.

Some 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, said the people, who asked not to be identified discussing the plans. Although there’s no specific projection in the outline, those estimates are lower than the 19% increase in the 2023 proposal and the 9% bump floated ...