U.S. Moves to Ease Bank Rules, Citing "Overregulation"

U.S. Treasury Secretary Linda Bessent has announced a major overhaul of financial regulations. The goal is to remove rules her council calls "overregulation" to help economic growth. The changes focus on the Financial Stability Oversight Council (FSOC). This powerful group, led by the Treasury Secretary, monitors risks in the financial system. The plan simplifies how the council labels non-bank companies, like large investment firms, as potential risks. This labeling triggers stricter federal oversight. The new process will be faster and clearer. Officials argue current rules are too complex and slow. They say the changes will protect financial stability while encouraging investment and lending. The move is part of a wider push to review financial rules. Supporters believe it will boost the economy. Critics warn it could increase risk by weakening oversight of large financial companies.