"New Capital Increase Plan from the Fed to Wall Street"

Fed Announces Capital Increase Plan for Banks

The Federal Reserve (Fed) aims to announce a yet-to-be-defined plan in the first quarter of 2026. This plan is designed to reorganize the capital needs of large banks.

Michelle Bowman's Role

Michelle Bowman, who was appointed as the Vice Chair of the Fed by President Donald Trump, is leading the development of this plan.

Easing of Biden Era Capital Proposal

According to a report by Bloomberg, the Fed has proposed a revised plan that will significantly ease the bank capital proposal from the Biden era for large Wall Street banks.

Expectations and Projections

According to the information obtained, officials expect a capital increase of between %3 and %7 for large banks with this plan. However, these projections will remain below the increases of %19 in 2023 and %9 in the previous year.

Expectations from Wall Street

Although the plan is still in the initial stages, it is expected to be met with great satisfaction by Wall Street banks. However, it is noted that this significant capital increase could raise the cost of credit and weaken U.S. banks against international competitors.

Officials' Discussions

According to sources, U.S. officials have not yet reached a definitive agreement, but it is stated that they are largely in agreement. Bowman has held discussions with the leaders of the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) during the approval process of the plan.

In this context, it is reported that the OCC spokesperson did not respond to a request for comment, while Fed and FDIC officials refused to comment on the matter.