Large US banks are formally submitting their final requests to the Federal Reserve to soften proposed capital rules, as the central bank wraps up its consultation on Thursday. Among their top asks are reductions to capital assigned to trading activities, scrapping a requirement to hold capital against unused credit card lines, and further fixes to reduce the impact of a surcharge on globally interconnected banks. The Fed’s revised proposal, unveiled in March, would reduce big banks’ loss-absorbing capital by around 4.8%, a dramatic improvement from the original 2023 plan that had envisaged a 20% capital hike. Industry groups will argue that regulators have been too conservative in assigning capital to trading, and will push back against holding capital against 10% of unused credit lines known as unconditionally cancelable commitments. Banks are not planning a major challenge this time, having pared back their asks to focus on the most significant issues, with one industry group identifying nearly 100 issues but planning to make the case for only a few dozen.