The fight by big banks against higher capital standards came to the Congress on Thursday where Republicans held a hearing to air Wall Street concerns about regulation and its impact on profits.
Little more than two years since taxpayer bailouts were needed to firm up banks’ flimsy balance sheets, governments on both sides of the Atlantic are moving to force the banks to hold more capital and be better prepared for future crises.
Banks are resisting, however, and remarks made at a U.S. House of Representatives hearing showed they have support among many Republicans and some Democrats, with the 2007-2009 credit crisis growing fainter in the rear-view mirror.
Citing concerns about international competitiveness and the availability of credit in a fragile economy, JPMorgan Chase Chief Risk Officer Barry Zubrow told lawmakers: “The regulatory pendulum clearly has now begun to swing to a point that risks hobbling our financial system and our economic growth.”
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