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US banks cheer regulators' steps toward easing capital requirements
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US banks cheer regulators' steps toward easing capital requirements
Oct 14, 2025 11:21 AM

NEW YORK, Oct 14 (Reuters) - U.S. bank executives

expressed optimism that Trump administration regulators will

soften capital rules, a major reversal from stricter proposals

under the Biden administration.

Wall Street has already locked in major wins on its

regulatory wish list, including a pullback on supervisory bank

exams and confidential disciplinary notices, alongside a

friendlier stance on bank mergers.

"I absolutely think that the regulatory direction of travel

is improving our competitive position significantly," Goldman

Sachs ( GS ) CEO David Solomon told analysts on an earnings conference

call on Tuesday. He expected to have a "very clear picture" of

regulatory matters later this year and in the first half of

2026.

Officials are expected to shrink a key leverage constraint,

reduce a capital surcharge levied on risky global banks, and

overhaul annual tests that gauge whether lenders can withstand

an economic shock, Reuters reported earlier this month, citing

industry executives.

Solomon echoed those forecasts on Tuesday. If its capital

buffers were reduced, Goldman could redeploy its resources into

growth areas, he said.

Citigroup ( C/PN ) Chief Financial Officer Mark Mason said the bank

will reduce its capital target after its latest results in the

Federal Reserve's annual stress test. It was watching to see how

other rules would evolve, including standards known as Basel

endgame, which sparked unprecedented industry pushback.

"I feel very good about the financial stability of the bank

and the industry -- we're well-capitalized, we've got a very

strong balance sheet," Mason told journalists on a conference

call.

"The regulatory environment is moving in the right direction

seemingly in terms of taking a more holistic look at capital

requirements... the sentiment from DC and from the regulators, I

think, is a positive one."

JPMorgan Chase ( JPM ), the nation's largest lender, said it might

still have some technical disagreements with regulators on how

rules were calibrated, but nonetheless welcomed the tone and

pace of the administration's moves so far.

"The relevant agencies are working well together, there's a

sense of urgency and so we're encouraged," JPMorgan's ( JPM ) Chief

Financial Officer Jeremy Barnum told analysts.

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