Powell's major actions exposed.
On August 16, Eastern Time, Bloomberg quoted insiders as saying that Federal Reserve Chairman Jerome Powell recently attended a closed-door meeting attended by CEOs of large US banks, encouraging them to work with the Federal Reserve to avoid a years-long legal battle over the Biden administration's signature capital plan.
Looking back, the new banking regulatory regulations issued by US regulators in July last year required banks with assets of more than $100 billion to increase their capital by about 16%. But there were reports recently that the Federal Reserve showed other regulators a revised plan, and the increase in bank capital may be reduced from the initial 16% to a minimum of 5%.
Analysts said that the revised plan mentioned by Powell at the closed-door meeting was an important step, which means that the final version may not be finalized this year. The final plan and impact of the "US Basel Accord New Rules" will depend on the results of the US election, and there are still major variables in the US regulatory authorities' bank capital reform.
