Balance of Power Weekly Washington Policy Pulse: Fed Chair, Bank Leverage (Dec. 1, 2025)
Dec 1, 2025
In this engaging discussion, Nathan Dean, a senior policy analyst from Bloomberg Intelligence, shares insights on key topics affecting investors. He reveals that Kevin Hassett is emerging as a frontrunner for Federal Reserve Chair. Dean explores the impact of new bank capital rules and previews a crucial House hearing on bank regulations. He also highlights challenges surrounding the National Defense Authorization Act, the uncertain future of Obamacare subsidies, and a potential $12–13 billion farm aid package, all while signaling shifts in the political landscape before year-end.
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NDAA Negotiations Face AI Preemption Tension
- The NDAA remains largely bipartisan and negotiators aim to finish language soon.
- Attempts to attach an AI preemption provision are politically challenging and unpopular with defense stakeholders.
ESLR Finalized: A First Taste Of Deregulation
- Regulators finalized the enhanced supplementary leverage ratio, lowering required ratios to roughly 3.5%–4.3% for big banks.
- Nathan Dean frames this as the first tangible taste of bank deregulation with about $13 billion of capital freed for GSIBs.
Regulatory Moves Could Return Tens Of Billions
- Upcoming hearings will test whether Basel III endgame changes and GSIB surcharge tweaks will further reduce capital.
- Dean notes potential combined capital returns could reach tens of billions if regulators cut GSIB surcharges while adjusting Basel III.