Bank of America's relaxation of regulation benefits Jeffrey's prediction of $2.6 trillion in loan capacity to be released According to analysts from Jefferies Group, the relaxation of regulation by Bank of America is expected to release approximately $2.6 trillion in lending capacity for large financial institutions, thereby consolidating the higher valuations of American lending institutions relative to European competitors. Analysts Aniket Shah and Daniel Fannon, among others, wrote in a report on Friday that relaxing regulation can "drive substantial increases in loans, mergers and acquisitions, and technology investments before 2026" and will boost earnings and market share. They cited discussions with Fernando de la Mora, co head of financial services at Alvarez&Marsal, writing: "Capital release may strengthen the valuation premium of US banks relative to their European counterparts and support higher stock prices." Trump administration officials are planning to soften bank capital measures established after the 2008 financial crisis. After banks complained that this would limit their operations, the Federal Reserve has circulated plans to significantly relax a Biden era proposal aimed at increasing capital levels. European bankers and politicians have also stated that the EU's banking regulations are too strict and giving American lending institutions an advantage.