Why Bigger ‘Capital Cushions’ Have Banks On Edge

Bloomberg, Aug. 3, 2023–Jennifer Surane, Katanga Johnson
U.S. regulators want to require banks to add billions of dollars to their capital cushions in the aftermath of the collapse of several lenders in early 2023. The biggest and most powerful Wall Street banks, for their part, say they’re resilient enough under existing requirements. They say that the changes would increase their costs and reduce their lending, stifling economic growth in the process, and that they plan to appeal to regulators to modify some provisions before they’re finalized. (MBA mention)