US Regulators Unveil a Proposal to Relax a Key Bank Capital Measure
Regulators are poised to give US banks a long-sought break on how much capital they need to hold.
The Federal Reserve on Wednesday proposed changes to the enhanced supplementary leverage ratio.
Photographer: Ting Shen/Bloomberg
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US regulators this week unveiled a proposal to relax a key bank capital measure, citing unintended consequences from the rule on Treasury markets. Spanish regulators approved BBVA’s proposed acquisition of Banco Sabadell — with a big, possibly deal-breaking condition: The two lenders would have to maintain separate operations for at least three years. Sabadell is still fighting the takeover, and this week Bloomberg reported the bank could shore up its defense by selling its British unit. In the US, Northern Trust affirmed its commitment to independence following a merger approach from Bank of New York Mellon.
Elsewhere in hurdles, HSBC is considering whether having employees back in the office three days a week is worth $200 million in extra real estate costs. BNP Paribas is fighting an order to pay €250 million in back taxes, penalties and interest related to transactions that allegedly helped foreign investors dodge taxes. And traders at JPMorgan Chase are struggling mightily to join the private credit boom. All that and more, below.— Janet Paskin