Regulatory Changes and Higher Capital Requirements for Big Banks, says Fed's Vice Chair

Michael Barr, the Federal Reserve's Vice Chair for Supervision, has proposed significant changes to the regulation of America's largest banks, including higher capital requirements and tougher stress tests. The overhaul would require banks to increase their holdings of capital to make them more resilient during times of trouble. Barr's proposals aim to update capital requirements based on bank risk, address vulnerabilities exposed by recent bank collapses, and expand oversight to a wider group of large banks. The changes would need to go through a notice-and-comment period before being implemented. Bank lobbyists have criticized the announcement, while some experts believe the proposed changes are long overdue.