US moves to soften capital rules: ‘Big banks can declare mission accomplished’
US federal regulators are trying to soften bank requirements, loosening the amount of capital US banks must have, in what would be some of the biggest changes to bank restrictions since the 2008 financial crisis and a huge win for financial institutions.On Thursday, US Federal Reserve officials are expected to vote to lower capital requirements – the funds they need to cover risky assets – for the biggest banks by 4.8%, which could free up capital for banks such as JPMorgan Chase, Goldman Sachs and Morgan Stanley.Larger regional banks like PNC would see their requirements drop by 5.2%, while requirements banks with less than $100bn in assets would fall by 7.
7%.Capital requirements were increased after Wall Street’s risky bets triggered 2008 financial crisis.Elizabeth Warren, a Democratic senator and ranking member of the Senate banking committee, who helped create regulations after the 2008 financial crisis, said in a statement that the banking industry has been on “a multi-year lobbying assault to gut modest safeguards on Wall Street risk-taking”.“Big banks can now declare mission accomplished.Today’s proposal grants their every wish,” Warren said.
“It’ll mean bigger payouts for megabank shareholders and executives, less lending to small businesses and families, and a banking system even more prone to devastating crashes and taxpayer bailouts.”The initiative has been spearheaded by Michelle Bowman, a Fed governor and the central bank’s vice-chair for supervision, who Donald Trump appointed last year.In a speech at the Cato Institute last week, Bowman said the changes would provide “more efficient regulation and banks that are better positioned to support economic growth”.“Following the 2008 financial crisis, regulators implemented reforms that substantially increased bank capital and strengthened financial system resilience,” Bowman said.“While these initial reforms were necessary, experience shows requirements that overly calibrate low-risk activities produce unintended consequences.
”The changes will be a major revision to Basel III, global banking regulations that were set up in the aftermath of the 2008 financial crisis,After the collapse of Silicon Valley Bank (SVB) in 2023, US regulators were looking to tighten Basel III and make large banks hold more capital,But the major banks pushed back aggressively, arguing in 2024 that they helped stabilize the economy after SVB’s fall and that stronger regulations could lead more businesses to riskier lines of credit,“It’s time to fight back,” Jamie Dimon, the CEO of JP Morgan, said at the time, adding that banks fear a “fight with their regulators, because they would just come and punish you more”,The winds of regulation changed when Bowman replaced Michael Barr, a Fed governor who was the head of banking supervision under Joe Biden and was a staunch advocate for tighter capital requirements.
High charges, poor service: NCP hits the skids as drivers change habits
Nearly a century old and once host to London fashion week, the NCP car park in Brewer Street in London’s Soho is facing an uncertain future. Its former glories – which at one time included separate rooms for chauffeurs and changing rooms for theatregoers – have long given way to complaints about a lack of security and high parking charges, but this week things got worse.National Car Parks, one of the UK’s biggest car park operators, which dates back to 1931, filed for administration at the high court in London after struggling to pay its rents and buckling under a £305m mountain of debt. This means the future of 340 car parks across the UK, in town and city centres, at hospitals and airports, is uncertain along with the fate of 682 people who work for the Japanese-owned business.Car parks are regarded as a high-margin business, generating revenue from pay-as-you-go and season tickets, overstay fees and fines via modern payment systems while requiring little day-to-day maintenance, amid a general shortage of parking
Shrinkflation takes a bite out of Easter eggs as shoppers pay more for less
Shoppers are shelling out for smaller eggs again this Easter as shrinkflation takes another bite out of the favourite seasonal treat.The price of popular branded chocolate eggs has risen by more than 40% in some cases while some have also shrunk in size, according to research by the consumer champion Which?.At Asda, this year the Galaxy milk chocolate extra large Easter egg is £5.97 and weighs in at 210g. That compares with £4
Cryptocurrency firms suffer heavy losses in Illinois primaries after spending big
The cryptocurrency industry spent big and lost often in this week’s Illinois primaries.As the industry prepares to make massive donations in the 2026 midterm elections to replicate its success in 2024, the Illinois losses mark an early setback for firms that are trying to establish themselves as power players in American politics.Crypto companies flooded the state’s Democratic primaries with millions of dollars to promote candidates they believed would have a light touch when it came to regulating digital assets. AI firms, meanwhile, backed opposing candidates and seemed to cancel each other out.Using Super Pacs that are allowed to spend unlimited sums of money, crypto and AI companies ran television advertising and distributed campaign fliers that only occasionally alluded to their industries
Lack of funding is stifling scientific research | Letter
Liz Kendall is right to warn that the UK must not let quantum computing talent slip through its fingers (UK must learn lessons from AI race and retain its quantum computing talent, says minister, 17 March).However, UK Research and Innovation’s current funding decisions risk doing exactly that.The government has announced £1bn for quantum computing, but it is cutting support for fundamental research in particle physics, astronomy and nuclear physics (PPAN). These are not separate issues. It is precisely the kind of blue-sky research funded through PPAN that trains the scientists and develops the ideas that underpin emerging technologies like quantum computing
Australia dig themselves out of a hole in women’s T20 win over West Indies
Australia got the Sophie Molineux era under way in sloppy style as a new-look side overcame six spilled chances before turning the screw late for a 43-run victory over West Indies in the first women’s T20 international in St Vincent. But as the dress rehearsals continue for the T20 World Cup starting in June, the role in the XI of Australia’s new captain remains unclear after the allrounder did not bat or bowl on her return from injury.An unusually messy performance in the field threatened to cost Australia dear as West Indies made a promising start to their 165-run chase. Alana King was the main offender as she dropped three catches early in the innings, including a pair while standing on the deep backward square rope, before striking back with the ball.The leg-spinner sent Hayley Matthews (11) packing with an exquisite delivery that drifted across the West Indies captain before sliding under her bat on the way to crashing into the stumps
Liam Marshall double edges Super League leaders Wigan past York Knights
These were the nights that critics of Super League’s decision to expand to 14 teams feared but as the new season settles into a rhythm, they are fast becoming some of the most enjoyable.Yes, the result was what almost everyone – even the most optimistic York Knights supporter – would have predicted at kick-off. But goodness, what a rollercoaster ride this was as Super League’s newest team pushed arguably its biggest and most recognisable heavyweight every step of the way on a thrilling evening in Wigan.Next weekend, Super League celebrates the 30th anniversary of its inaugural game. That night, Paris Saint-Germain announced their arrival as rugby league’s big hope for expansion with victory over Sheffield
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