Fed Set to Loosen Capital Rules: A Boost for Goldman's Expansion

Key Takeaways Fed proposes easing capital rules, cutting requirements by 4.8% while keeping safeguards intact.Goldman could benefit from reduced weight on short-term wholesale funding in calculations.GS may see improved ROE and flexibility as rules lower capital friction on trading activities.Recently, the Federal Reserve proposed easing post-2008 financial crisis capital rules for U.S. banks to support lending while preserving financial system stability. As a result, large institutions such as The Goldman ...