US eases Wall Street regulations, Europe’s financiers seek similar reforms

US banking regulators proposed slashing capital requirements for the nation’s largest banks by nearly 5%, and the ripple effects are already crossing the Atlantic. European policymakers, watching Wall Street’s profits swell, are now drafting their own playbook to keep their banks from falling further behind. Wall Street cashes in The timing of the US regulatory easing isn’t coincidental. It aligns with broader efforts by the Trump administration to loosen financial rules and boost American banking competitiveness on the global stage. JPMorgan Chase, Bank of America, and Goldman Sachs all reported strong second-quarter 2026 earnings, buoyed by increased trading revenues that thrive in a lighter regulatory environment. When banks need to hold less capital in reserve, they can deploy more of it into revenue-generating activities like trading and lending. Analysts estimate that the Basel III endgame adjustments could unlock substantial balance-sheet capacity—potentially in the tens of billions for the largest institutions. Europe watches, then follows The European Commission is preparing a competitiveness report, expected around July 18, 2026, that proposes legislative changes along si...