“Tuesday was a good day for capital hawks.
“Regulators finalized a rule putting in place stricter funding requirements for the biggest banks and proposed changes to a part of the rule that would toughen the new requirements compared to a version released last year.
“The policies advanced on Tuesday stand as clear evidence that Wall Street critics’ dissatisfaction with post-financial crisis reforms have pushed regulators to adopt a tougher stance, particularly when it comes to capital.
“In short, this is a rule of significant consequence,” Federal Deposit Insurance Corp. Chairman Martin Gruenberg said before his agency unanimously approved the rule. “In my view, this final rule may be the most significant step we have taken to reduce the systemic risk posed by these large, complex banking organizations.”
On Tuesday, advocates for doing more were happy to pause and enjoy the moment.
“If you think about all the things people are doing, it really is going to prove to be in my view one of the best rules to reduce the risks of taxpayer bailouts in the future,” said Better Markets President and Chief Executive Dennis Kelleher.
Read full POLITICO Pro article here.