Fed’s relaxed bank-capital plan faces bipartisan FDIC pushback
bank-capital proposal is running into a wall of resistance at the Federal Deposit Insurance Corp.
At least three of five FDIC directors oppose the latest overhaul previewed by the Federal Reserve last week, according to people familiar with their thinking. Democrat Rohit Chopra has joined the two Republican board members, including Vice Chairman Travis Hill, against the changes, the people said.
Fed Chair Jerome Powell, when asked Wednesday about the other agencies’ buy-in, said the idea is “we’re all moving together,” with the goal of wrapping up the massive package in the first half of 2025. But the bipartisan pushback at the FDIC is again raising questions about how long and what it will take to get all three bank regulators on the same page.
Chopra, who’s also head of the Consumer Financial Protection Bureau, has privately described the sharp reduction in capital requirements as closer to a giveaway to Wall Street banks, the people familiar with his discussions said. Republican Jonathan McKernan has said he’s a resounding “no” and wants a full reproposal instead of a partial one.
“We’ve been too focused on reverse engineering a particular capital aggregate — first a significant increase in July 2023, and now, somewhere in between,” McKernan said.
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