CNN BUSINESS | The Fed is yanking away big banks’ ‘get out of jail free’ card

New York (CNN Business)Federal regulators said Friday they won’t extend a Covid relief provision granted to big banks, dashing Wall Street’s hopes for an extension.

JPMorgan Chase (JPM), Wells Fargo (WFC) and other big bank stocks retreated on the news, helping to drive the Dow down as much as about 300 points, or 1%. US Treasury yields also crept higher, weighing on the broader markets.

Last spring, when the economy and markets were in chaos, the Federal Reserve handed a sort of “get out of jail free” card to America’s big banks: It loosened leverage rules that JPMorgan, Bank of America (BAC) and other large lenders must abide by.  —read more—