Bank CEOs Warn Proposed Banking Rules Could Harm Small Businesses and Low-Income Americans

Wall Street CEOs are opposing proposed regulations that would increase capital requirements for banks, arguing that it would have negative consequences for the economy, businesses of all sizes, and American households. The regulations, known as the Basel 3 endgame, would raise capital requirements on the largest banks by about 25%. The CEOs claim that this would hurt profitability and growth prospects for the industry, while benefiting nonbank players. They also warn that small businesses, low-income borrowers, and rural communities would be adversely affected, as mortgages, small business loans, and infrastructure projects would become more expensive. Additionally, the CEOs argue that heightened oversight on banks would push financial activity to nonbank players, leaving regulators blind to potential risks.