Major U.S. banks submitted final comment letters to the Federal Reserve requesting softer Basel Endgame capital requirements.
Financial institutions are targeting reductions in capital assigned to Wall Street trading activities. The industry also opposes a new requirement to hold capital against unused credit card lines.
Regulators previously relaxed the initial 2023 proposal which envisioned steeper capital hikes. Banks warn the current draft could still reduce liquidity in crucial markets like U.S. Treasuries.
The final decision will impact the capital structure and earnings of the largest U.S. banks. These institutions represent core holdings in major financial ETFs.