A plan to require large banks to bolster their financial footing contains analysis that “materially underestimated” the amount of additional capital the largest lenders will have to hold against potential losses, a lobbying group for the biggest U.S. banks told regulators on Friday.
A July proposal would require the largest U.S. banks to hold more than 30% more capital, much higher than regulators’ 19% estimate, according to the Financial Services Forum, which represents the eight largest U.S. megabanks.
Friday’s letter is the latest pushback to the heightened requirements from banks and their lobbying groups. They say the relatively large increase in bank-capital requirements is unneeded, would raise costs for consumers and lead banks to stop offering certain services. (Read the letter in full here.)