, Columnist
Bigger Financial Cushions Won’t Solve Banks’ Woes
US regulators want to boost capital requirements for the biggest banks by nearly 20%. There are better ways to make the financial system more resilient.
Don’t overdo it.
Photographer: Al Drago/BloombergThis article is for subscribers only.
US banking regulators are back to their old tricks. In the wake of a crisis — this time the March demise of a handful of regional banks — they want banks to fund themselves with more loss-absorbing equity capital.
No doubt, capital is a key element of resilience. But there are better ways to strengthen the financial system.