Written by Lananh Nguyen, Pete Schroeder and Tatiana Bautzer
New York (Reuters) – American bankers are pushing for a group of lighter regulations from the administration of President Donald Trump, and they say they are fans because of the signals that the organizers hear.
Four of the industry executives told Reuters that bank chiefs want to reduce the requirements of reporting some transactions, reduce the powers of the enforcement of the organizers, accelerate the approvals of the deal, and the correctional capital rules. Two of these sources said that those who are asking include raising the tape on the basis of anti -money laundering requires reporting cash with a value of $ 10,000 and limiting the use of secret regulatory warnings, known as matters that require attention. One of these sources said that there is another major change that could reduce annual stress tests.
The industry obtained encouraging signs of general data from the administration, even as bankers are waiting for the installation of the main organizers.
“There was acceptance of our fears,” said Kevin Frum, head of the Financial Services Forum, who represents the largest international banks, and he is pushing for capitalist and supervisory controls. “We are in the early stages of that conversation.”
General data by the organizers indicated a change of focus. Treasury Secretary Scott Beesen told the New York Economic Club this month that the financial organizational agenda needs “a basic re -concentration of the priorities of the supervisors,” while Travis Hill is behaving at the FDIC, he said at the Washington Banking Conference that the organizers need “more focus on real basic financial risks and less in management about that.”
Organizational change
The changes that are paid can reach some of the most important cancellation of banking restrictions in the years. Recently, some large banks have seen the ruling in 2019 as part of the “Sewing” project that took place in the first Trump administration.
The list of overall regulatory changes comes after the industry fought organizers in the Biden era who sought to implement tougher capital bases known as Basel Endgame last year. The proposal has been effectively canceled in a great victory for banks, and the industry is now seeking more relief.
Some bankers claim that the organizers in recent years have been unfairly heavy even with the reporting of large institutions for strong profits and flexibility through the epidemic and industry turmoil 2023, when three regional lenders failed.
However, supporters of the most stringent rules argue that they provide critical handrails of the financial system, protect consumers and the wider economy.
“The financial rules protect the main families in the streets while weakening them enriching bankers in Wall Street,” said Dennis Keylir, head of the Advocacy Better Markets group, who is paying for tougher financial rules.
Treasury spokesman did not respond to the request for comment.
The spokesman for the agencies that supervise the banks – the Federal Deposit Insurance Corporation and the Federal Reserve – refused to comment. The White House did not respond to a request for comment.
Supervision and enforcement
Three of the sources said that the heads of banks have a broader and ambitious goal to calm supervision and enforcement. The industry seeks to curb the organizers’ focus on the financial financial risks that can be measured.
The banks complained for years that the examiners sought to check beyond the basic financial matters and in areas such as corporate governance, computer systems and compensation, according to the Institute of Banking Policy, a commercial association that represents the great American lenders.
Three sources said that industrial leaders were aiming to reduce MRAS, which was provided by organizers such as the Federal Reserve and the Currency Observer Office (OCC). The lenders are treated as urgent issues, and to perpetuate many employees to repair business to avoid fines or other penalties.
BPI said that some MRAS represented “illegal transcendence” by the organizers, who should focus on the financial risks on the financial situation of banks.
Pesin repeated this concern in his speech in New York, and called on the agencies to “lead a culture that focuses on material financial risks instead of examining the fund.”
The lender also presses for a wide reform of the so -called alleged stress tests, an annual exercise aimed at measuring banks’ capabilities to deal with potential crises. The Federal Reserve at late last year indicated that it was open to changes to make the exam more transparent. BPI led a lawsuit against the Federal Reserve late last year, calling for these changes.
The “outdated” monetary rule
It can be one of the easiest regulations to control is the control base (AML) that requires banks to reports on customers who receive more than $ 10,000 in cash transactions in one day, according to a sources, an executive official in the industry who refused to identify them to discuss supervisory issues. This requires rewriting a base within the Treasury.
The AML lobby groups were cited as contributing to “Debanking”, or when the bank closes the individual account. President Donald Trump publicly complained of “Depangge” of conservatives earlier this year.
“The requirements we have … according to the anti -money laundering laws and various sanctions regulations, public laws worldwide are very stressful,” Catherine Romler, chief public official in Goldman Sachs said at this month conference.
The industry has long complained that this limit is old and generates unnecessary files. The source said that you will welcome a higher limit like $ 75,000 or even 100,000 dollars.
One of the leading bank organizations supported the idea. Rodney Hood, head of the currency observer office, who monitors national banks, said in a statement that the current limit is “old and burden”, and supports an increase between the mitigations of the other base.
Congress Jonathan Gold is scheduled to ask Trump’s choice of OCC permanently on Thursday.
(Participated in the coverage of Lananh Noguyen, Tatiana Bautuzer in New York, Pete Schrooder in Washington, and additional reports by Chris Bernetis; edited by Megan Davis and Nick Ziminski)
