The news: Bank lobbies won their capital requirements battle. In a speech to the Brookings Institution, the Federal Reserve Vice Chair for Supervision Michael Barr revealed the regulator will resubmit a proposal that would increase big bank capital requirements by 9% instead of 19%, per Reuters.
But the delays mean the new proposal depends on support from a new president.
How we got here: During the initial public comment period, banking and industry groups ran strong advocacy campaigns against the proposed rules, citing concerns over small business capital needs and greater economic impacts.