"US Regulators to Ease Basel Capital Rules, Boosting Banks and Clean Energy"

US regulators are expected to significantly reduce the extra capital banks must hold under the proposed Basel III rule, which aims to overhaul how banks with more than $100 billion in assets calculate the cash they must set aside to absorb potential losses. The expected changes include reducing the risk weights for fee income associated with lending services, scrapping or reducing higher risk weights on mortgages to low-income borrowers and on renewable energy tax credits. The proposal has faced aggressive pushback from Wall Street, with banks mounting advertising and grassroots campaigns, lobbying Congress, and signaling potential lawsuits. Fed officials, including Chair Jerome Powell, are working on rewriting the proposal, with the possibility of reproposing the rule still on the table.