Powell tells bank CEOs to work with Fed on increased capital proposal – report

• Fed Chairman Jerome Powell held a closed-door meeting with the CEOs of major U.S. banks in July and encouraged them to work with the Fed on a proposal to increase bank capital requirements.
• JPMorgan Chase’s (NYSE:JPM) Jamie Dimon, Citigroup’s (NYSE:C) Jane Fraser, Bank of America’s (NYSE:BAC) Brian Moynihan, and Morgan Stanley’s (NYSE:MS) Ted Pick were in attendance, Bloomberg reported.
• When the original draft of the proposal, known as Basel III endgame, came out, it called for a 16% rise in capital requirements. It was developed by the Fed, the FDIC, and the Office of the Comptroller of the Currency.
• However, in June, the Fed came back with a document listing potential revisions, including lowering the requirement boost to as little as 5%.
• Bloomberg noted that some FDIC and OCC officials have said privately they would push back on efforts that would make the capital increase what they deem too low.

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