Fed proposes looser version of bank capital reform program
The Federal Reserve showed other regulators a document with possible changes to bank capital reform that would significantly ease the burden on Wall Street banks, according to people familiar with the matter. The revised bill would withdraw key parts of the landmark proposal, people familiar with the matter said. The Fed's paper didn't include an updated estimate of how much extra capital large banks would have to hold to cushion financial shocks. But people familiar with the matter said preliminary calculations showed that the proposed reforms could result in a minimum 5% increase in total capital. That compares with an overall 16 percent increase called for in the initial version. The plan's substantial revisions are more likely to meet Fed Chairman Jerome Powell's goal of attracting broad support from the Fed's board.
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