Bank deregulation set to unlock $2.6tn of Wall Street lending capacity
The post Bank deregulation set to unlock $2.6tn of Wall Street lending capacity appeared on BitcoinEthereumNews.com.
Wall Street is about to get a historic boost. New findings from Alvarez & Marsal show that the Trump administration’s deregulation drive will open up nearly $2.6 trillion in new lending power for U.S. banks. The rollback of post-crisis capital rules, those designed after the Great Recession in 2008, is expected to free $140 billion in locked capital for America’s biggest lenders, setting off pressure on regulators in Europe and Asia to reconsider their own limits. Since Donald Trump returned to the White House nine months ago, U.S. regulators have eased constraints that once forced banks to maintain large loss-absorbing buffers. The updated rules will strengthen the position of many Wall Street giants, allowing them to channel more money into AI, data centers, and energy infrastructure while also boosting shareholder payouts. The policy reversal will benefit the largest financial institutions far more than regional banks struggling with credit costs and liquidity tightening. Trump’s deregulation drive unlocks massive lending firepower Fernando de la Mora, co-head of financial services at Alvarez & Marsal, said Trump is “kicking off a major wave of deregulation, unlocking a huge amount of capacity, which will give a massive economic boost and an earnings uplift.” The consultancy’s data shows a 14% cut in common equity tier one capital requirements for American banks, a rule that dictates how much equity must be held against losses. That reduction alone could lift earnings per share by 35% and returns on tangible common equity by 6%, helping banks scale credit and push deeper into high-yield markets like crypto and AI financing. The full report details how similar deregulation might ripple through other markets, as the U.K. is expected to trim bank capital requirements by 8%, likely to preserve competitiveness with the U.S. But EU regulators are taking a different path, preparing…
