Federal Reserve chair Jerome Powell is facing criticism for obstructing the finalization of tougher capital requirements for banks, increasing the risk of financial instability. Critics argue that the current equity buffers of banks are insufficient to prevent a credit crunch. Various experts, including Stanford Professor Anat Admati and Chicago Booth's Anil Kashyap, express concerns about the proposed bank capital rules and the potential consequences of regulatory retreat on banking crises.
Fed's Powell hints at regulatory retreat. Will fewer capital requirements mean more banking crises? Scott Sumner at #EconLog: https://t.co/KOFNo4ufxu
Opposing the Biden administration's efforts to strengthen capital requirements, Federal Reserve chair Jerome Powell is setting the stage for the next banking crisis. https://t.co/DXYRm7KurU
Very little has changed since the Silicon Valley Bank collapse one year ago: Federal Reserve chair Jerome Powell’s long-standing penchant for deregulation is still putting the stability of the financial system in jeopardy. https://t.co/DXYRm7JWCm
One year after the collapse of Silicon Valley Bank, Federal Reserve chair Jerome Powell is obstructing the finalization of tougher capital requirements for banks — and increasing the chances of more turbulence. https://t.co/DXYRm7JWCm
Chicago Booth’s Anil Kashyap says complexity “is a fair critique” of the new bank capital rules proposed by America’s regulators. via @FT #Finance #USEconomy https://t.co/kKV4kH42JN https://t.co/HRrERSH08Z
🔊 On @Breakingviews: Credit Suisse and a string of US regional banks failed last year. Stanford Professor Anat Admati tells Liam Proud that lenders’ equity buffers are punier than they seem – and that fixing the problem needn’t cause a credit crunch https://t.co/pCW2ADwN0u https://t.co/W2jk4XgjJ7