US Plans to Eviscerate Bank Regulations, Risking Repeat of 2008 Crisis
US banking regulators plan to significantly reduce capital requirements for major banks this summer, potentially reversing key post-2008 crisis protections. This follows extensive lobbying by the banking industry, arguing that current regulations hinder lending and competitiveness. The proposed changes would lower the supplementary leverage ratio, impacting the amount of high-quality capital banks must hold against risky assets. This deregulation effort aligns with the Trump administration’s broader push to reduce regulations, despite concerns about increased market volatility.
John Q. Hosedrinker