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.