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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
USB in upward trend: price may jump up because it broke its lower Bollinger Band on September 16, 2026
USB may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 26 of 38 cases where USB's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 68%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where USB's RSI Oscillator exited the oversold zone, 18 of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 62%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 39 of 62 cases where USB's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 63%.
Following a +1.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where USB advanced for three days, in 177 of 304 cases, the price rose further within the following month. The odds of a continued upward trend are 58%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on USB as a result. In 62 of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 67%.
USB moved below its 50-day moving average on September 08, 2026 date and that indicates a change from an upward trend to a downward trend.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
The Aroon Indicator for USB entered a downward trend on October 09, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 4 (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 PE Growth Rating for this company is 37 (best 1 - 100 worst), pointing to consistent 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.
The Tickeron Valuation Rating of 39 (best 1 - 100 worst) indicates that the company is fair valued 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 (1.511) is normal, around the industry mean (1.323). P/E Ratio (11.733) is within average values for comparable stocks, (23.509). Projected Growth (PEG Ratio) (1.773) is also within normal values, averaging (1.190). Dividend Yield (0.035) settles around the average of (0.030) among similar stocks. P/S Ratio (3.141) is also within normal values, averaging (3.738).
The Tickeron Price Growth Rating for this company is 55 (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 Profit vs. Risk Rating rating for this company is 72 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. USB’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 58, placing this stock worse than average.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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