The Federal Reserve just released its revised so-called Basel III “Endgame” rule and it is a night-and-day improvement over the previous proposal under Biden-appointed Fed Vice Chair Michael Barr.

Our UP study by Stephen Moore and David Malpass showed that the Biden-era plan would have slammed banks with massive capital requirements, choked off lending, and made it harder for families and small businesses to access credit. Worst of all, these rules would have been much more stringent for US banks than the standards adopted in the rest of the world.  We pressured the Fed to delay until the election, and then to let the new president’s appointee review the issue.

Thankfully, Fed Vice Chair Miki Bowman blocked the capital requirements and actually moved in the other direction, simplifying the rules.

The new proposed rules, as Bowman pointed out: “The result will be more efficient regulation and banks that are better positioned to support economic growth, while preserving safety and soundness and financial stability.”

Michael Barr, now demoted to just a regular board member, said that he “cannot support any of the” new proposed rules. We see that as a bullish indicator.

The full proposal is available here:

Incoming Fed chair Kevin Warsh and Vice Chair Bowman are going to be a fabulous pair.