The Fed just kicked the can on capital increases for the dangerous Wall Street MEME Megabanks and their casino derivatives down the road until 2028. Wut could go wrong?

TL;DR: The Megabanks Are Winning the Fight Against Stronger Capital Requirements

• Dimon and McHenry: These two powerful figures, representing JPMorgan Chase and the House Financial Services Committee, respectively, are actively working to weaken proposed capital requirements for large banks.
• Derivative Risk: Megabanks have a history of risky derivative trading, as evidenced by JPMorgan’s $6.2 billion loss in 2012.
• Regulatory Pushback: The Federal Reserve, FDIC, and OCC proposed higher capital requirements in 2023, but faced strong opposition from the megabanks.
• Lobbying Efforts: The megabanks, led by Jamie Dimon, have used lobbying, legal threats, and public relations campaigns to influence regulators and lawmakers.
• Regulatory Capitulation: The Fed has now backed down on its original capital proposal, potentially weakening oversight and increasing the risk of another financial crisis.
• Continued Risk: The megabanks will continue to have significant exposure to derivatives, and the lack of stronger capital requirements could pose a threat to the financial system.

FULL ARTICLE:

wallstreetonparade.com/2024/09/the-fed-just-kicked-the-capital-increases-for-the-dangerous-megabanks-and-their-derivatives-down-the-road-for-years/

h/t welp007