Banks Try to Ease Back Regulations in Wake of Recent Turmoil

The market turmoil has sparked banks like JPMorgan Chase and Bank of America to try for further easing of certain regulations; according to the Washington Post the Bank Policy Institute urged the Federal Reserve to lower capital requirements and alleviate stress tests; eliminating the regulations would help the banks better handle the increased turmoil in the markets; banking experts called the move opportunistic; Jeremy Kress, an assistant law professor at the University of Michigan School of Business, said, “the whole idea of capital requirements and stress-testing banks is to make sure they have enough cushion to absorb losses.”; the Federal Reserve cut rates by 50 basis points in a bid to help ease market concerns, though markets reacted negatively to the Fed’s action. Business Insider

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