Fed Considers Looser Oversight for Big Banks

The Federal Reserve is considering changes to its oversight thresholds for major banks in the US. This would give some of the largest lenders more room to expand without facing additional regulatory requirements.

Under current rules, banks with over $100 billion in assets face stricter stress-testing and other requirements. The Fed is thinking of raising this threshold to around $150 billion or even using nominal GDP to adjust it. This could put the highest threshold at around $960 billion.

Banks like U.S. Bancorp, Capital One, PNC Financial, and Truist would be among those that could benefit from these changes. They are currently close to the $700 billion threshold, which triggers some of the Fed's toughest requirements.