Davis Polk partner and Financial Institutions practice chair Randy Guynn was quoted in IFLR discussing proposals from the Federal Reserve and the FDIC to raise capital requirements for large U.S. regional banks.

“There’s pretty strong opposition to the proposed capital rule among the banks, who say the changes would increase their costs and therefore force them to lend less and engage in less market-making, which in turn would diminish their ability to keep securities prices stable and support significant volume,” said Randy. “The regional banks say that such significant increases are unnecessary, and that they are different from Silicon Valley Bank or First Republic.”

Regulators fail to address real reasons behind US banking crisis,” IFLR (October 12, 2023)