US regulators propose rules to increase bank capital

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US regulators have announced draft rules that would require large banks to carry more cash, aiming to prevent financial distress. The rules would take the power of determining risk out of banks' hands and place it in the regulators' hands, ensuring standardization across the industry. Banks are opposed to these proposals as it would hurt their profits, potentially leading to increased charges for borrowers or limiting their ability to make certain loans. The banks argue that these rules will make the US less competitive globally. This pushback from banks on new regulations is the strongest since the financial crisis.

The European Central Bank has raised interest rates back to their record high, and US bank regulators have advanced plans to impose more arduous capital requirements on the country’s large lenders. Plus, the FT’s Elaine Moore says the Twitter/X rebrand doesn’t make sense, but that’s kind of the whole point.

Mentioned in this podcast:

ECB raises interest rates back to record high

Regulators announce ‘Basel III endgame’ rules for large US banks

Twitter/X: maverick rebrand leaves Musk with a cross to bear

The FT News Briefing is produced by Fiona Symon, Sonja Hutson and Marc Filippino. Additional help from Tom Stokes, Monica Lopez, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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