U.S. Bancorp Stock Surges as Fed Lifts Regulatory Requirements

U.S. Bancorp stock surged after the Fed released it from requirements to meet standards for larger banks.

The bank no longer has to satisfy Category II requirements following its acquisition of MUFG Union Bank.

A Category II designation would have imposed stricter liquidity rules, more frequent stress tests, and a more complex capital regime.

Category II applies to banks with over $700 billion in assets; U.S. Bancorp had $680 billion as of June 30.

The Fed's decision lifts regulatory burdens on the Minneapolis-based regional lender.