Fed rate hikes are posing a risk to banks. The banks hate the government’s solution.
2023-06-27 09:56:17 source：Politico
June 26, 2023
President Joe Biden’s regulators are moving to force the nation’s biggest banks to shore up their defenses against potential losses in the wake of Silicon Valley Bank’s stunning collapse.
They’re running into fierce opposition.
The industry is engaging in a full-court press to fend off higher capital requirements, which are intended to provide a greater cushion against setbacks and reduce the banks’ reliance on debt and deposits. It’s finding sympathetic ears among congressional Republicans like House Financial Services Chair Patrick McHenry, who say a proposal to raise funding levels by as much as 20 percent will squeeze lending and impede growth at an especially fragile time for the economy.
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https://www.politico.com/news/2023/06/26/bidens-regulators-poised-to-turn-up-the-heat-on-big-banks-00103467