Banks Fire First Shot in Fight Over Higher Capital Requirements

Trade groups representing the biggest banks asked the Federal Reserve for an extended period to weigh in on proposals to require higher capital levels, the first volley in what will likely be a furious battle over the coming rules.

The proposals, outlined in a July 10 speech by Fed Vice Chair for Supervision Michael Barr, would require banks with at least $100 billion in assets to use a standardized approach to determine their credit, operational, and trading risks, rather than relying on their own models. Doing so will bring the US in line with international standards known as Basel III, ...