“Bankers hate being told to set capital aside, even if it’s the best way to cushion against losses from high-risk investments. As many see it, not investing a chunk of money is tantamount to forgoing profit voluntarily. And each time regulators say banks must raise more capital, banks show up with dubious, self-serving studies insisting that bigger capital buffers could force banks to drastically curtail lending, slowing economic growth and destroying millions of jobs.”

Read the full editorial here.