US Stock Market Move | The Federal Reserve plans to amend the capital reform proposal, causing bank stocks to collectively decline. JPMorgan Chase (JPM.US) fell more than 6%.

On Tuesday, US bank stocks fell. As of the time of writing, JPMorgan Chase (JPM.US) fell over 6%, Citigroup (C.US) fell over 3%, Barclays (BCS.US) fell over 2.7%, New York TrustCo Bank Corp NY (BK.US) fell 1.8%, HSBC (HSBC.US) fell over 2%, UBS Group AG (UBS.US) fell nearly 2%, and Bank of America Corp (BAC.US) fell over 1.7%. In terms of news, Fed Vice Chairman Barr stated that US regulatory agencies will make extensive revisions to their bank capital rules proposal, cutting the expected impact on the largest banks in half and exempting most measures for smaller banks. The regulatory agencies originally planned to increase the capital of the eight largest US banks by 19%, but the revision will reduce this amount by about half. Lending institutions including Citigroup, Bank of America Corp, and JPMorgan Chase will now face a requirement to increase their capital by 9% to cushion financial shocks.