Key facts
- Wall Street banks are seeking bipartisan support for proposed changes to bank capital rules.
- Republican regulators have proposed reducing big-bank capital by approximately 4.8%.
- This proposal contrasts with a previous plan that would have increased capital by 20%.
- Democratic-appointed Fed governors Lisa Cook and Philip Jefferson voted for the proposal, emphasizing the need for balance.
- Some banks are advocating for additional capital relief beyond the current proposal.
Wall Street banks are aiming to secure Democratic support for proposed changes to bank capital rules, seeking to ensure the long-term survival of regulatory relief. The Federal Reserve is nearing the finalization of significant overhauls to these rules, with Republican regulators proposing a reduction in capital requirements. However, industry executives believe that bipartisan consensus is crucial for the changes to withstand future political shifts, especially with Democrats potentially gaining more power.