Market Chatter: Revised Fed Plan Would Significantly Reduce Big Bank Capital Requirements

BY MT Newswires | ECONOMIC | 10/22/25 08:15 AM EDT

08:15 AM EDT, 10/22/2025 (MT Newswires) -- The Federal Reserve has shared a revised plan with other US regulators that would meaningfully reduce the amount of additional capital big banks must hold from a level proposed under the Biden administration, Bloomberg reported Wednesday, citing people familiar with the matter.

The Fed's revised plan would require most big banks to hold an extra 3% to 7% of capital, compared with the 19% in the 2023 proposal and the 9% floated in an earlier revised version last year, the people reportedly said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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