A plan to dial back US regulators’ landmark bank-capital proposal is running into a wall of resistance at the Federal Deposit Insurance Corp (FDIC), reports Business Times.
At least three of five FDIC directors oppose the latest overhaul previewed by the Federal Reserve last week, according to people familiar with their thinking. Democrat Rohit Chopra has joined the two Republican board members, including vice-chairman Travis Hill, against the changes, the people said, speaking to Business Times.
Chopra, who’s also head of the Consumer Financial Protection Bureau, has privately described the sharp reduction in capital requirements as closer to a giveaway to Wall Street banks, the people familiar with his discussions said. Republican Jonathan McKernan has said he’s a resounding “no” and wants a full reproposal instead of a partial one.
“We’ve been too focused on reverse engineering a particular capital aggregate – first a significant increase in July 2023, and now, somewhere in between,” McKernan said.