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Trump and Fed Propose Major Bank Capital Cuts

3/20/2026

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Summary

Story summary

U.S. President Donald Trump and the Federal Reserve proposed significant reductions in capital requirements for major U.S. banks, lowering average capital holdings by nearly 5%.
Critics, including Better Markets, economist Bartlett Naylor, and Fed Governor Michael Barr, say the plan prioritizes Wall Street over the public interest and could undermine bank resilience amid the U.S.-Iran conflict.
The proposals will undergo a 90-day public comment period before finalization.

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Story summary

U.S. President Donald Trump and the Federal Reserve proposed significant reductions in capital requirements for major U.S. banks, lowering average capital holdings by nearly 5%.
Critics, including Better Markets, economist Bartlett Naylor, and Fed Governor Michael Barr, say the plan prioritizes Wall Street over the public interest and could undermine bank resilience amid the U.S.-Iran conflict.
The proposals will undergo a 90-day public comment period before finalization.