An unlikely coalition of banks, community groups and racial justice advocates is urging federal regulators to rethink the plan they proposed in July to update rules governing how U.S. banks protect themselves against potential losses.
Financial regulators around the world, including in the Europe Union and Britain, are adopting similar standards.
Banks have long complained that holding too much capital forces them to be less competitive and restrict lending, which could hurt economic growth.
What’s interesting about the latest proposal is that groups that don’t traditionally align themselves with banks are joining in the criticism.
“This is the biblical dynamic: Capital goes up, banks yell,” said Isaac Boltansky, an analyst at the brokerage firm BTIG.
Persons:
Banks, ”, Isaac Boltansky
Organizations:
Europe Union
Locations:
Europe, Britain