"Federal Reserve Expected to Ease Bank Capital Requirements, Powell Signals"
Big banks have successfully lobbied US regulators to anticipate changes to a rule requiring them to hold greater buffers against future losses, with Federal Reserve Chair Jay Powell and FDIC Chair Martin Gruenberg acknowledging the likelihood of revisions. The proposed capital rule, known as Basel III, has faced criticism from banks, community groups, and politicians, with concerns about its potential impact on the economy and access to mortgages. This shift highlights the increased influence of big banks in Washington, prompting discussions of potential lawsuits and emphasizing the ongoing power struggle between financial institutions and regulatory authorities.