US moves to soften capital rules: ‘Big banks can declare mission accomplished’

The Federal Reserve is expected to vote Thursday on lowering capital requirements for major U.S. banks including Goldman Sachs and JPMorgan Chase by 4.8%, allowing them to hold less cash in reserve against risky assets. The move represents one of the most significant rollbacks of post-2008 financial crisis regulations, granting banks greater flexibility to deploy capital for lending, investments, and shareholder returns. Financial institutions have long lobbied for such relief, arguing that stricter capital rules adopted after the financial crisis are unnecessarily restrictive and limit economic growth. The change aligns with the Trump administration's broader deregulation agenda aimed at easing restrictions on the financial sector. Critics worry that lower capital buffers could reduce banks' ability to absorb losses during future economic downturns.