Federal Reserve Proposes Weaker Bank-Capital Overhaul for Wall Street Lenders, Impacting $SPY, $KRE, $KBE

The Federal Reserve has proposed a weaker version of its bank-capital overhaul, which would significantly lighten the regulatory burden on Wall Street lenders. This revised proposal aims to ease the capital requirements for major financial institutions such as Citigroup, Morgan Stanley, and JPMorgan Chase. The move is seen as a response to concerns from the banking industry about the stringent capital rules previously suggested. The changes could impact financial markets, including $SPY, $KRE, and $KBE.