{"id":1992916,"date":"2023-08-07T08:10:02","date_gmt":"2023-08-07T12:10:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-banking-starts-to-pick-its-battles-against-new-capital-rules\/"},"modified":"2023-08-07T08:15:39","modified_gmt":"2023-08-07T12:15:39","slug":"us-banking-starts-to-pick-its-battles-against-new-capital-rules","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-banking-starts-to-pick-its-battles-against-new-capital-rules\/","title":{"rendered":"US banks are beginning to choose their fights against new capital regulations."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-banking-starts-to-pick-its-battles-against-new-capital-rules%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1992916&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<h2>Regulators Unveil Reform Package for Post-Financial Crisis Capital Regulations<\/h2>\n<p>By Douglas Gillison, Nupur Anand and\u200c Tatiana Bautzer<\/p>\n<p>(Reuters) \u2013 Now \u2062that \u200dregulators in Washington have unfurled a hefty reform\u200d package of\u2063 post-financial\u200c crisis capital regulations, banking industry advisers are\u200b honing in on what they consider \u200dmost disruptive, including \u2064risk management requirements that could affect real estate lending, consumer credit and wealth management.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>In a joint proposal on July 27, the top\u200c three U.S. bank regulators proposed a \u200dthousand-page overhaul \u2064that would in\u200b aggregate\u2062 require banks to set aside an additional 16% in capital the regulators believe is needed to strengthen the financial \u2063system.<\/p>\n<p>By increasing\u200c the degree of risk attributed to certain assets, the proposed rules would \u200brequire banks \u200dto hold proportionately \u2062more\u200c capital, potentially eating into\u200b returns on equity\u200b and profits. \u2063Industry lobby groups such \u200bas\u200c the Financial Services Forum (FSF), the Bank Policy \u2062Institute and the Securities Industry and Financial \u2063Markets Association have argued this will make it harder to lend to consumers and warn \u2064it will slow\u200b the economy.<\/p>\n<p>Though the spring\u200b of\u2064 2023 saw three of the four biggest bank failures in U.S. history, the FSF reacted to the\u200d proposal by saying the Federal Reserve\u2019s own stress tests show the largest banks \u200bwere sound and well capitalized, making the \u2062proposal \u201ca solution without a problem.\u201d<\/p>\n<p>Industry analysts see areas which the\u200c well-financed bank lobby will be \u200beager to red-pencil.<\/p>\n<p>Joe Saas, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senate-confirms-kathleen-hicks-as-deputy-defense-secretary\/\" title=\"Senate Confirms Kathleen Hicks as Deputy Defense Secretary\">senior vice president<\/a> for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/here-are-the-investors-who-lost-millions-in-the-ftx-implosion\/\" title=\"Here Are The Investors Who Lost Millions In The FTX Implosion\">balance sheet risk<\/a> at\u200c  financial services conglomerate\u200b FIS, said the proposal\u2019s shift from a standard risk charge \u2062to a range of risk levels to be allocated to \u2062different assets for rental-backed real estate \u2062lending would likely \u2064be \u201ccircled for push-backs.\u201d<\/p>\n<p>Making\u2062 such lending more expensive \u200cwill shrink \u2062credit available to historically \u2064under-served borrowers, something the industry is likely to fight, he said.<\/p>\n<p>Chen Xu, an attorney\u200c in the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/has-joe-biden-really-nominated-a-marxist-to-regulate-our-banks\/\" title=\"Has Joe Biden Really Nominated A Marxist To Regulate Our Banks?\">financial institutions group<\/a> at Debevoise &#038; Plimpton, said the new <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-banking-starts-to-pick-its-battles-against-new-capital-rules\/\" title=\"US banks are beginning to choose their fights against new capital regulations.\">rules viewed high-revenue business lines<\/a> as higher risk.<\/p>\n<p>\u201cSome businesses that are fee-based such as\u200b wealth management will need to allocate more capital even if there is no balance sheet risk,\u201d \u200bhe \u2064said, adding that this could weigh on \u2062trading in \u200dcapital markets.<\/p>\n<p>Reform proponents argue the true danger to public welfare\u200d is financial instability.<\/p>\n<p>Fed representatives did not\u2064 offer to comment for this article. But \u200cwhen announcing the \u2063proposal, Fed Vice Chair for\u2063 Supervision Michael\u2063 Barr said \u201cextensive analysis\u201d indicated the benefits \u2063of a strong \u2063financial system \u201coutweigh the costs to economic activity\u201d\u200b that may come with holding more \u2063capital.<\/p>\n<p>Major banks have commented only sparingly on the proposal. \u200cJPMorgan Chase CEO Jamie \u200bDimon told CNBC\u200d on Wednesday that it was \u201chugely \u2062disappointing,\u201d claiming it was poorly\u200b designed and would \u2064shrink access \u2064to credit for consumers and small businesses. \u2063 <\/p>\n<p>Wells Fargo said it had no comment beyond an Aug 1 regulatory filing in which it\u200d said the proposals were likely to alter its risk gauges for lending and result in a net \u2064increase in its \u200dcapital requirements.<\/p>\n<p>A representative from Citigroup declined to \u200bcomment. \u200b Bank of America \u200cdidn\u2019t\u200c respond to a \u2063request for comment.<\/p>\n<p>According to Kevin Stein, a senior adviser at the financial services advisory firm Klaros \u2064Group, the new risk-weight norms could drive more\u200b business to\u2062 non-bank lenders beyond the reach \u2063of regulators. <\/p>\n<p>The bank lobby has had plenty of\u2062 time to gear up for this battle as the July proposal was six years in the making. It is intended \u2064to \u2062implement a final set of post-financial crisis reforms, often known as Basel III \u201cEndgame\u201d agreed to in \u20642017 by the Basel Committee on Banking Supervision, which comprises regulators from major economies.<\/p>\n<p>Morgan Stanley analysts say the \u2062largest banks may take \u2062up to four years \u200dto set aside profits to comply with the \u2064new capital rules. However, Richard Ramsden, a Goldman Sachs analyst covering large banks, said the biggest lenders face an unexpectedly onerous climb.<\/p>\n<p>The increase in risk-weighted assets translates\u200d to about $135 billion in incremental capital requirements, or about 200 basis\u200b points of common equity tier-one capital for \u2064the biggest banks, Ramsden said.<\/p>\n<p>\u201cThe banks will have to make decisions pretty much now. What are they going to \u200cdo with\u200d buy-backs?\u2063 What are they going to do in terms balance sheet management?\u201d he asked.<\/p>\n<p>Dennis Kelleher, head of the financial reform advocacy group Better Markets, said the banking \u2064industry had made \u200csimilar complaints in the past which he believed had proven\u200b unfounded.<\/p>\n<p>\u201cWall Street is \u2063expert at hiding their special interests behind the concerns of others, which they inflame with scare tactics and false claims,\u201d \u2062he said.<\/p>\n<p>\u201cWhat they don\u2019t\u200b talk about is the threat to\u200b the economy and\u200c lending\u2063 and main \u2062street \u200dand families and contagion from under-capitalized banks.\u201d<\/p>\n<\/p>\n<p>  \u200d (Reporting by Douglas Gillison, Tatiana Bautzer, Nupur Anand and Saeed Azhar; editing by Megan Davies and Anna \u2062Driver)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/us-banking-starts-to\/attachment\/file-photo-raindrops-hang-on-a-sign-for-wall-street\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Latest News<\/h3>\n<p>This \u200bweek has \u2063been filled with major headlines\u200c in the U.S. and around the world. One America\u2019s Rachel\u200b Acenas brings us the latest.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Interviews<\/h3>\n<p>with \u200cAlex\u2064 Newman<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Expert Analysis<\/h3>\n<p>with Dr. \u200cCarole\u200c Lieberman<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Special Reports<\/h3>\n<p>with Tom MacDonald<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Breaking News<\/h3>\n<p>By\u200d James Pearson and Christopher Bing LONDON\/WASHINGTON\u200b (Reuters) \u2013 An elite group of North Korean hackers secretly breached computer networks at a\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Business\u200b News<\/h3>\n<p>By VarunVyas Hebbalalu BENGALURU (Reuters)\u200d -Paytm Chairman Vijay Shekhar Sharma\u200c will buy a \u200c10.3% stake worth $628 million in the firm he\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Financial Insights<\/h3>\n<p>By Mark John (Reuters)\u2062 \u2013 If medieval advances in the plough \u200ddidn\u2019t lift \u200dEurope\u2019s peasants out of poverty, it was \u200clargely because\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Investment News<\/h3>\n<p>By\u2063 Alexander H\u00fcbner BERLIN\u200d (Reuters) -Germany\u2019s \u2063OHB on Monday said U.S. financial \u2063investor KKR was buying a minority stake in the space\u2026 <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>the wake of Washington&#8217;s new capital regulations, banking industry advisers are focusing on the most disruptive aspects. Risk management requirements are of particular concern as they could impact real estate lending, consumer credit, and wealth management.<\/p>\n","protected":false},"author":66,"featured_media":1992917,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-1992916","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1992916","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1992916"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1992916\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1992917"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1992916"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1992916"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1992916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}