Overview
- Fed, FDIC and OCC are set to approve a revised Basel draft and solicit feedback, with Michelle Bowman saying big‑bank capital will fall slightly under the proposal.
- The overhaul removes the “stricter‑of‑two” risk‑measurement requirement and eases operational‑risk charges that would have hit fee‑based businesses.
- A separate GSIB‑surcharge plan updates key inputs and short‑term funding assumptions, which analysts say could benefit the largest U.S. banks to varying degrees.
- The process faces hurdles including a bipartisan Fed board decision, possible Democratic dissents, support from Trump’s Fed chair pick Kevin Warsh, and White House Budget Office review.
- Analysts expect final rules may not land until early 2027, while greater clarity could let banks tap part of an estimated $175 billion in excess capital for lending and shareholder returns.