Fed’s Bowman says regulators can compromise on bank capital plan with ‘substantive changes’

WASHINGTON (Reuters) – Federal Reserve Governor Michelle Bowman said on Wednesday a proposed plan by regulators to hike bank capital requirements has “known deficiencies,” but is optimistic policymakers can compromise on a final rule.

Bowman, who voted against the so-called “Basel endgame” proposal in July as overly restrictive on banks, reiterated her concerns with how much capital banks would be ordered to hold under the tentative plan. But if regulators agree with industry concerns on the proposal and significantly step back the impact, she suggested she could support advancing the rule-writing effort.

(Reporting by Pete Schroeder; Editing by Andrew Cawthorne)