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?

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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.
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FULL ARTICLE:

https://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


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