🏦Big Banks Might Catch A Break As...?

Good morning. US stock futures rose in Monday morning trading as stock market indexes raced to new all-time highs.

🏦 US regulators reconsider bank capital requirements

📝 Our report: The Fed and two other U.S. regulators are cooking up a new plan to trim a hefty nearly 20% capital hike for big banks, reports the Wall Street Journal. Required increases in capital for banks like JPMorgan and Goldman Sachs — meant to ensure they have sufficient buffers to absorb potential losses — would on average be about half as much as originally floated, the Journal added.

 🔑 Key points:

• Top officials from all three agencies involved in the pending capital rules — the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency — are still discussing substantive and technical revisions, with no guarantee that an agreement will be reached, the WSJ reported.

• The three bank regulators, led by the Fed, in July last year unveiled a proposal to overhaul how banks with more than $100 billion in assets calculate the cash they must set aside to absorb potential losses.

• The Basel proposal aims to make banks more resilient to potential losses, lowering the risk of failures or bailouts. Banks say that they are already highly capitalized and the changes are unnecessary.

💡 So what: U.S. regulators reconsidering capital requirements for banks could signal a significant shift in the banking landscape. Easing these requirements might boost bank profitability by freeing up capital for lending and investments, potentially stimulating economic growth. However, it could also raise concerns about financial stability and risk management, as lower capital reserves might leave banks more vulnerable in times of economic stress. Balancing these factors will be crucial to ensure the banking system remains robust while supporting economic activity.

Monday - Fed Vice Chair for Supervision Michael Barr Speaks

Tuesday - New York Fed President John Williams Delivers Opening Remarks

Wednesday - Minutes of Fed's May FOMC Meeting

Thursday - Atlanta Fed President Raphael Bostic Speaks

Friday - Consumer Sentiment (final), Fed Gov Christopher Waller Speaks

📈 Dave Ramsey shares his tips for building wealth!

🏡 Everything you need to know about buying your first home!

💼 In the market for a job? Watch out for these interview red flags!

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🛰️ Musk takes internet company to largest archipelago chain

WHAT: Elon Musk jetted off to Bali to beam Starlink satellite internet to Indonesia, the world's biggest archipelago, proving that even islands need a little space-age Wi-Fi. Details about the agreement between the Indonesian government and Musk’s SpaceX, the aerospace company that operates Starlink services, were not provided, with Musk also signing an agreement on enhancing connectivity in the country’s health and education sectors.

WHY: Indonesia, a vast archipelago of 17,000 islands sprawled across three time zones with a population of more than 270 million, has been trying for years to secure deals with Musk's Tesla on battery investment and for Musk’s SpaceX to provide fast internet for the country’s remote regions.

💰 Crypto lender returns billions to customers during wind-down

WHAT: Crypto lender Genesis Global got the green light from the court to return $3 billion in cash and crypto to customers, leaving its parent company, Digital Currency Group (DCG), with nothing but a lesson in bankruptcy woes. A U.S. Bankruptcy Judge approved Genesis’ Chapter 11 liquidation plan and overruled an objection raised by DCG, which had argued that Genesis should pay its customers and creditors no more than what the crypto assets were valued at in January 2023, when Genesis filed for bankruptcy.

WHY: Genesis estimated in February that it would be able to pay its customers up to 77% of the value of their claims, depending on future price fluctuations.

🐭 Disney performers vote to join union

WHAT: Disneyland performers who bring Mickey Mouse, Cinderella, and other beloved characters to life have voted to unionize, proving even fairy tales can benefit from a little labor solidarity. The Actors’ Equity Association labor union said in a recently released statement that cast members for the parades and characters departments at Disney's theme parks near Los Angeles voted by a wide margin for the union to become the bargaining agent for the group of roughly 1,700 workers.

WHY: In recent years, Disney has faced allegations of not paying its Southern California workers, who face exorbitant housing costs and often commute long distances or cram into small homes, a livable wage. Parade performers and character actors earn a base pay of $24.15 an hour, up from $20 before January, with premiums for different roles.

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