- The Federal Reserve may close a loophole that allowed midsize banks to mask losses on securities they hold.
- The potential change could reverse a 2019 decision to loosen rules for midsize banks.
- Regulators are considering extending toughened restrictions to about 30 companies with assets between $100 billion and $700 billion.
- Regional banks such as U.S. Bancorp, PNC Financial Services Group Inc., Truist Financial Corp. and Capital One Financial Corp. could be affected.
- Banks are planning to fight rule changes.
Fed Rethinks Loophole That Masked Losses on SVB’s Securities
Potential change would reverse 2019 decision to loosen rules for midsize banks