Investing.com | Editor Venkatesh Jartarkar
Published Oct 17, 2023 04:24PM ET
U.S. Bancorp saw its stock surge by 7% on Tuesday, following the U.S Federal Reserve’s decision not to enforce the Dodd-Frank banking law’s Category II requirements by the end of 2024. The bank has recently acquired MUFG Union Bank and its assets have not met the $700 billion threshold for Category II status, which has resulted in a reduced regulatory burden.
The U.S regulatory framework classifies banks with over $700 billion in assets as Category II and those with more than $250 billion as Category III. With its $680 billion in assets as of June 30, U.S Bancorp falls under the latter category. The decision by the Federal Reserve effectively eliminates the bank’s need to develop quarterly plans for Category II compliance.
According…
