(Reuters) – The U.S. Federal Reserve’s watered-down version of a landmark bank capital proposal is facing resistance from the Federal Deposit Insurance Corporation, a top banking regulator, Bloomberg News reported on Friday.
At least three of five FDIC directors oppose the latest overhaul, the report said, citing people familiar with their thinking.
The report points to cracks among regulators as they look to implement a contentious proposal, which has led to a bitter battle between the banking industry and its watchdogs.
Under the original draft rules, first unveiled last year, big banks would have been required to hold 19% more capital to guard against the kind of losses that eventually led to the collapse of three banks in 2023.
But after months of opposition, the central bank relaxed those rules earlier in September, lowering the capital requirement to 9% from 19% for the major lenders.
Critics on the FDIC’s board include Vice Chair Travis Hill and Democrat Rohit Chopra, who is also the director of the Consumer Financial Protection Bureau, the Bloomberg report said.
(Reporting by Niket Nishant in Bengaluru; Editing by Shreya Biswas)
From: Yahoo.com
Financial News
