FINANCIALS: US Banks: Watered-Down B3E Rules Reportedly Coming This Month

BBG reporting US regulators are set to unveil US Basel III Endgame rules in the coming weeks, watered down under pressure from US banks’ lobbying. This has seemed inevitable for some time, so shouldn’t be much of a surprise or spread mover though notable that US regulators are easing rule books at times of easy credit with a rate cycle set to turn.

• BBG is reporting the Fed may unveil revised Basel III Endgame rules for US banks, as early as 19-Sep
• This regime is a stepping stone on the way to Basel IV regulations, currently still in development and brings the US banks more closely into line with regulations already in place in much of the rest of the world. Specifically, there are add-ons around operational risk, trading books but only limited changes to credit risk measurements.
• US banks have lobbied hard to have these regulations watered down and it’s appeared inevitable for some time that the regulators would cave, even after the debacle around Silicon Valley Bank et al. that were only a little over a year ago.