The news: US regulators are reportedly preparing to reduce capital requirements for banks, specifically the supplementary leverage ratio, which dictates how much top-tier capital banks must hold, per The Guardian.

Regulators will likely propose changes to existing requirements this summer.

How we got here: Big US banks have long argued these rules limit lending and market competition, especially for holding low-risk assets like US Treasuries. And last year, bank lobbies won their capital requirements battle. In a speech to the Brookings Institution, the Federal Reserve Vice Chair for Supervision Michael Barr revealed the regulator will resubmit a proposal that would increase big bank capital requirements by 9% instead of 19%, per Reuters.