(Bloomberg) -- Citigroup Inc. Chair John Dugan said he doesn’t expect the revamped bank-capital rules to be finalized until after the inauguration of the next president.
The executive pointed to what he said seemed to be a “fundamental stalemate” at the Federal Deposit Insurance Corp. over the latest version of the rules. US regulators are making extensive changes to their proposals known as Basel III and Federal Reserve Vice Chair for Supervision Michael Barr previewed some of the revisions in a speech last month, with a final proposal yet to be released.
The overhauled plan has run into resistance at the FDIC, Bloomberg reported in September, with some of the regulator’s directors opposed to the changes.
Dugan said at an Institute of International Finance conference on Wednesday that he doesn’t expect to see anything happening ahead of the election. He also noted a Donald Trump presidency would see a lot of personnel changes.
The proposed revisions to the rules would roughly slice in half the 19% capital hike that regulators had planned for the eight biggest US banks. The overhauled proposal followed a fierce lobbying campaign by Wall Street lenders after the plan was first released in July 2023 by the Fed and two other financial regulators.
The revisions were negotiated among the three regulators after the Fed had earlier floated a three-page document of possible changes that alarmed some officials.
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