Bank Deregulation Unleashes $2.6 Trillion Wall Street Lending Surge
U.S. regulators under the TRUMP administration have rolled back post-2008 crisis capital rules, freeing $140 billion in locked capital for major banks. This move is expected to trigger a domino effect, pressuring European and Asian regulators to relax their own restrictions.
Wall Street giants stand to gain disproportionately, with a 14% reduction in common equity tier one requirements potentially boosting earnings per share by 35%. The freed capital will likely FLOW into AI infrastructure, data centers, and energy projects while increasing shareholder returns.
Fernando de la Mora of Alvarez & Marsal notes the deregulation wave could deliver a 6% lift to returns on tangible common equity, enabling banks to expand credit offerings and penetrate high-yield markets more aggressively.
