The Impact of New Banking Regulations on Mortgage Rates and Bank Accounts

New proposals to raise capital requirements at Wall Street banks could have negative consequences for American homeowners, warns banking analyst Meredith Whitney. She believes that these rules will make it harder for small businesses and individuals to access capital, potentially leading to a 30% increase in mortgage rates. Whitney also highlights the risk of a "silver tsunami" as baby boomers downsize, which could cause home prices to decline. JPMorgan CEO Jamie Dimon echoes these concerns, stating that the new requirements could make mortgages and loans more expensive, while also pushing up consumer prices and retirement savings costs. Whitney further cautions that the proposal may drive more banking activity to non-regulated lenders, making lending even more expensive.