>> Big banks could soon catch a break thanks a revamped Federal Reserve.>> Our goal is to replace overly complex and inefficient requirements with a more stream lined set of requirements.>> With new Chief Jerome Powell at the helm, the Fed, Wednesday, issued a proposal that will relax a key rule put in place after the financial crisis.
The so called Volcker Rule prevents banks from taking risky bets using consumer deposits. Reuter's Fed watcher Jonathan Spicer explains the tweaks.>> What the Fed, and other US regulators did today was pare down a little bit this Volcker Rule that's been causing so many headaches for Wall Street.
They are allowing banks to do some more hedging and market making for their clients. They're also sort of shifting the parameters so that banks aren't assumed guilty until proven otherwise in this ban of proprietary trading. And they set up a tiered system so that smaller institutions have less restraints.
>> The banks are happy the proposed change will slash the high price for complying with the previous version of the rule, but that's where the joy ends.>> The Fed, well, is just taking a very moderate, measured approach. They probably won't please everyone on Wall Street, but it probably also does show that the Fed is not about to start ripping up regulations until they have been tested in the next downturn, or the next recession.
>> Not exactly the scorched earth approach to cutting back regulation President Trump has been promising since the campaign trail. But enough to show Trump era regulators are, at least, ready to loosen the grip on an industry that some politicians still worry is too big to fail.