"Banking Regulator Pushes for Stricter Capital Rules, Posing Challenge for Lenders"

Michael Barr, the Federal Reserve's vice chair for supervision, has called for tougher capital rules for large lenders in order to enhance the resilience of the financial system. Barr's recommendations include raising capital requirements for banks with $100 billion or more in assets, ending reliance on banks' internal risk estimates, and implementing long-term debt requirements for a broader group of banks. The proposed changes are expected to face intense lobbying from the banking industry, but Barr argues that the benefits of a more resilient financial system outweigh any potential negative impact on bank activities.