Fed Starts Talks on a Looser Version of Basel III Endgame

The Federal Reserve has initiated discussions to create a revised risk-based capital rule that would be less burdensome for the largest US banks compared to the plan proposed during the Biden administration. This move aims to strike a balance between maintaining financial stability and reducing regulatory burden for the banking sector. The new rule would be a looser version of the Basel III Endgame, a set of international banking regulations designed to strengthen the resilience of the financial system. The Fed's efforts are focused on finding a middle ground that provides adequate safeguards while also considering the operational and competitive challenges faced by the biggest banks. The details of the proposed changes and the timeline for implementation are still under discussion, with the Fed working to gather input from various stakeholders. The goal is to create a regulatory framework that supports the stability and growth of the US banking industry while ensuring appropriate risk management practices are in place.