Wall Street CEOs Sound Alarm on Economic Impact of New Regulations

CEOs of major Wall Street banks, including JPMorgan Chase, Bank of America, Wells Fargo, Goldman Sachs, Morgan Stanley, State Street, and BNY Mellon, warned lawmakers that proposed capital hikes and new regulations by U.S. bank regulators could negatively impact lending, capital markets, and the broader economy. The banks are campaigning against the "Basel endgame" proposal, which changes how banks calculate their loss-absorbing capital, and other regulations such as fair lending and fee caps. The CEOs argue that these rules could stifle lending, hurting small businesses and consumers. However, Senator Sherrod Brown criticized the banks for lobbying against the rules to preserve their profit margins. Regulators argue that the rules are necessary to protect the banking system from shocks. The CEOs will need to persuade skeptical Democratic lawmakers of the soundness of the banking sector.