The Fed Proposes Reducing Regulatory Burdens For Banks
Under the Federal Reserve’s newly proposed banking regulations unveiled on Wednesday, banks with less than $700 billion in assets could potentially face lighter regulations, compared to the Dodd-Frank regulatory framework. The Fed’s proposed design is based on broad range of factors including a bank’s asset size, exposure to foreign markets and off-balance sheet activities and other aspects.
Here are some of the highlights of the Fed's new proposed rules, which might be subject to further revisions
- Banks with $250 billion to $700 billion in assets could see their required liquidity coverage ratio (i.e. assets that can be quickly sold for cash) get reduced by as much as 30 percent. They would continue to face annual stress tests, though.
- Institutions holding assets between $100 billion and $250 billion might no longer have to meet regulatory liquidity buffers, and such banks can expect the Fed’s stress tests at a frequency of every two years (versus every year). Examples of these banks are SunTrust Inc., American Express, Ally Financial.
- Major regional institutions like US Bancorp, Capital One, PNC Financial and Charles Schwab, which have assets greater than $250 billion, or more than $75 billion in cross-border activity or non-bank assets, would potentially have have a lower liquidity standard to meet. However, such banks would still face yearly stress tests.
- Globally systemic banks based in the United States would not have any changes in the regulatory requirements. Those include JPMorgan Chase & Co., Bank of America Corp , Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley.
"The proposals would prescribe materially less stringent requirements on firms with less risk, while maintaining the most stringent requirements for firms that pose the greatest risks to the financial system and our economy," Fed Chairman Jerome H. Powell said.
The Fed says it wants to propose a separate rule for U.S. subsidiaries of foreign banks “in the near future.” It is also working with the Federal Deposit Insurance Corporation on revising certain parts of the “living wills” – a regulatory condition that requires big banks to submit plans for winding down business in case of failure.
The latest proposals from the Fed seem to attempt a loosening of the Dodd-Frank regime, and follows the law passed by Congress in May that ordered the Fed to reduce regulatory burdens on community and regional lenders.
Momentum Indicator for USB turns negative, indicating new downward trend
USB saw its Momentum Indicator move below the 0 level on June 13, 2025. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 98 similar instances where the indicator turned negative. In of the 98 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for USB moved out of overbought territory on May 21, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 26 similar instances where the indicator moved out of overbought territory. In of the 26 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 68 cases where USB's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for USB turned negative on June 11, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where USB declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
USB broke above its upper Bollinger Band on May 12, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The 10-day moving average for USB crossed bullishly above the 50-day moving average on May 09, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where USB advanced for three days, in of 292 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 283 cases where USB Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 51, placing this stock slightly worse than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. USB’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.412) is normal, around the industry mean (1.037). P/E Ratio (13.440) is within average values for comparable stocks, (16.968). Projected Growth (PEG Ratio) (1.195) is also within normal values, averaging (2.366). Dividend Yield (0.044) settles around the average of (0.059) among similar stocks. P/S Ratio (2.421) is also within normal values, averaging (2.927).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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