JPM - Jamie Dimon's Lobbying Pays Off? Report Says Regulators Contemplate Significant Reduction In Proposed Capital Norms Increase For Big Banks | Benzinga
In what could be a good tiding for big banks, a report on Sunday indicated that regulators are considering significantly reducing the proposed increase in capital requirements.
What Happened: The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency are working on a plan to bring down the nearly 20% increase in mandated capital increase for the biggest U.S. banks, the Wall Street Journal reported, citing people familiar with the matter.
They “are still negotiating substantive and technical revisions, and there is no guarantee that a deal will come together. It also could be late this year before any plan is ready,” the report said.
The rumored development comes after big bank CEOs, led by JPMorgan Chase & Co.’s (NYSE:JPM) Jamie Dimon, lobbied with Fed governors, including Chair Jerome Powell, to alter the capital rules proposed by Michael Barr, the central bank's vice chair for banking supervision.
The bankers tried to exploit the internal disagreement and concern within the seven-member Fed board over the regulatory proposals.
Dimon, in particular, was scathing in his attack of the proposal, the report said. Calling Barr’s proposal “flawed and poorly ...