Goldman CEO Says Proposed Bank Rules Could Impact Airfares, Pensions
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David Solomon
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Goldman Sachs Group Inc. Chief Executive Officer David Solomon argued recent proposals by regulators to force banks to hold more capital won’t make the world’s financial system any safer and could impact everything from flight prices to pensioners’ retirement savings.
The proposed rules — which the Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency unveiled in July — would require the biggest US banks to set aside more capital for a variety of different businesses. Solomon said one area that would be impacted would be uncollateralized derivatives, which he said airlines often use to hedge the price of jet fuel so they can have stability in their pricing.