Bank Capital Requirements Are So Much More Expensive Than the Capital

The desire among politicians and their regulatory enablers to foist ever=higher capital requirements on banks is relentless, and for being relentless, dangerous.

Supporters of regulatory decrees and laws meant to force banks to sideline more funds is said to be rooted in good things. In particular, it’s said that if banks have more in the way of sidelined funds, they’ll be better able to weather unexpected storms.

It all sounds so wise at first glance, but only at first glance. Given a second pass, if what regulators and politicians want for banks is so good for them, why the need for regulations or laws?

Read the Full Article at Forbes.


  • John Tamny

    John Tamny is a popular speaker and author in the U.S. and around the world. His speech topics include "Government Barriers to Economic Growth," "Why Washington and Wall Street are Better Off Living Apart," and more.

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