US Stock Market Move | Banking stocks rose across the board, with Goldman Sachs Group, Inc. (GS.US) up more than 3%.

On Friday, US bank stocks rose across the board. As of writing, Goldman Sachs Group, Inc. (GS.US) and Morgan Stanley (MS.US) rose by over 3%, JPMorgan Chase (JPM.US) and Citigroup Inc. (C.US) rose by over 2%, and Bank of America Corp (BAC.US) rose by nearly 2%. On the news front, there have been reports recently that the Federal Reserve has presented a revised proposal of the final rules of the Basel III agreement to other US regulatory agencies. This proposal will significantly relax the capital requirements for Wall Street's large banks. Some officials estimate that the new proposal will reduce the overall capital requirements for most large banks to between 3% and 7%, a figure much lower than the 19% increase proposed for 2023 and lower than the 9% proposed in last year's compromise version. Banks with larger trading portfolios may see even smaller increases or even decreases in capital requirements. Morgan Stanley stated that as of the second quarter of 2025, large banks collectively hold $157 billion in excess capital. Roughly estimated, even with a 7% increase in capital requirements, large banks would still retain at least $146 billion in excess capital. As subsequent capital rules (such as GSIB surcharges, SLR, and stress test transparency) are further adjusted, the capital adequacy of banks may continue to improve. Morgan Stanley added that the reduction in capital requirements is most beneficial for Goldman Sachs Group, Inc., which holds a large trading investment portfolio.