U.S. Bancorp Vows to Shrink Itself to Avoid Added Fed Scrutiny
- US Bancorp can still follow rules for Category III banks: Fed
- Execs had prepped for months to face additional regulations
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U.S. Bancorp promised federal regulators it would shrink its balance sheet and reduce its risk profile, a move that frees it from more stringent regulations.
The nation’s largest regional lender won approval from the Federal Reserve to retain its designation as a Category III bank, it said in a regulatory filing. That means it faces less costly and time-consuming regulations.