Wall Street bank capital to fall 4.8% under new rules, in win for industry - Reuters

New banking regulations will reduce Wall Street capital requirements by 4.8%, representing a regulatory concession to the industry. The capital rules, which determine how much cash banks must hold in reserve, have been a central point of contention between regulators and financial institutions since the 2008 financial crisis. Banks argue that lower capital requirements free up funds for lending and investment, while regulators have traditionally maintained stricter standards to prevent excessive risk-taking. The reduction signals the Trump administration's shift toward a more industry-friendly regulatory approach. The change affects how major U.S. banks deploy their assets and manage their balance sheets going forward.