(Nov 14): The US Federal Reserve (Fed) will meet the chief financial officers of big US banks next month to detail its updated plans for implementing international capital standards, said JPMorgan Chase & Co vice-chairman Daniel Pinto.
JPMorgan and other banks were “taken aback” by a previous edition of the plan, known in the US as the Basel Endgame, given how much it would drive up capital requirements, Pinto said at a conference in Frankfurt on Friday. The upcoming meeting with Fed vice-chair for supervision Michelle Bowman may change that.
“We will get more clarity,” Pinto said. His bank is now “hearing” that the fresh plan will be “something that is quite aligned” with how European authorities are implementing the Basel standards.
Bloomberg reported last month that the Fed has shown other US regulators the outlines of a revised plan that would dramatically relax a Biden-era bank capital proposal for Wall Street’s largest lenders. Bowman said earlier this month that unveiling plans tied to Basel III was a priority but emphasised the new proposal must fit into the broader framework of capital rules for banks.
Pinto said that together with some recalibration of the rules for global systemically important banks, the updated plan “more or less will keep the capital relatively flat” compared to current rules.
Uploaded by Tham Yek Lee
