Skip to content
Subscriber Only

Basel Plans for Capital ‘Punishment’ Prompt Protests From Banks

Global banks are launching a counterattack against new capital guidelines, warning that they could reduce lending and harm growth as well as alter competition in the financial system.

The Clearing House Association and the Institute of International Bankers, whose members include JPMorgan Chase & Co, Bank of America Corp., Wells Fargo & Co., Citigroup Inc., Deutsche Bank AG and ING Groep NV, said in a letter that capital surcharges agreed to by the Federal Reserve and international regulators are “deeply flawed” and “reflexively based on the notion that size alone creates prudential concerns.”