US regulators likely to revise leverage-ratio plan in wake of new law relaxing Dodd-Frank

30 May 2018 7:16am
US regulators will likely have to revise their capital-reduction proposal for the eight largest banks so that it is consistent with legislation signed by President Donald Trump last week that eased the same requirements for two of these banks.

Both the US Federal Reserve’s April plan and the new law relax the Dodd-Frank treatment of the supplementary leverage ratio, but in different ways.

The Fed proposal, which would reduce banks’ capital by $121 billion, signaled an awareness in April of what was then a bipartisan bill that had been passed by the Senate. It acknowledged regulators might have to go back to the drawing board.