US Regulators Unveil Plans to Ease Big Bank Capital Rules

Wall Street lending giants would get relaxed capital requirements under proposals unveiled by the Federal Reserve on Thursday, in a move that could potentially unleash billions of dollars for lending, share buybacks and dividends.

The package of proposals, which are subject to a 90-day public consultation before they can be finalized, were crafted by officials at the Fed, in addition to the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency. The Fed’s Board of Governors as well as the FDIC Board, which includes the head of the OCC, voted to formally propose the plan Thursday.