Powell Says Wall Street Faces Higher Capital Requirements
- Fed chair says increases will be ‘very skewed’ to big firms
- For large players, requirements could rise by 20%, he says
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Wall Street’s biggest banks will bear the brunt of US regulators’ moves to raise capital requirements for lenders, according to Federal Reserve Chairman Jerome Powell.
The largest lenders could face an increase of about 20% in what they have to set aside, Powell told members of the Senate Banking Committee on Thursday. He added that details were still in flux and specifics could change. The KBW Bank Index slid during the hearing, and was down 1.9% at 12 p.m. in New York.