Why Banks Are Nervous About Bigger 'Capital Cushions

US regulators want to require banks to add billions of dollars to their capital cushions in the aftermath of the collapse of several lenders in early 2023. The trio of US agencies proposing the new rules say they’ll make banks stronger by reducing their risk of insolvency. The biggest and most powerful Wall Street banks, for their part, say they’re resilient enough under existing requirements. They say that the changes would increase their costs and reduce their lending, stifling economic growth in the process, and that they plan to appeal to regulators to modify some provisions before they’re finalized.

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