Fed Bid to Hike Bank Capital Slammed by Ex-Vice Chair Quarles
- He says proposal will hurt banks’ ability to aid the economy
- Vice Chair Michael Barr previewed plan earlier this week
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Former Federal Reserve Vice Chair for Supervision Randal Quarles criticized his successor’s plan to significantly increase capital requirements for big banks, saying it would needlessly hurt the economy.
“It’s a mistake,” Quarles, who now chairs the Cynosure Group, told a roundtable sponsored by the Securities Industry and Financial Markets Association trade group on Wednesday. “It will restrict the ability of the financial system to provide support for the real economy.”