Fed Vice Chair Defends New Bank Capital Rules, Disputes Banker Concerns of Reduced Lending

Federal Reserve vice chair Michael Barr defended new bank capital rules, saying higher requirements after 2008 didn't hurt lending or growth.

Barr pushed back against banker concerns the new proposal would reduce lending, saying similar worries after 2008 proved unfounded.

The rules could increase capital requirements 16% overall, affecting the 30 largest banks, Barr said.

JPMorgan and Goldman Sachs CEOs criticized the plan, warning it could push lending to private markets.

Barr estimated the rules would only modestly increase lending costs and said feedback could shape the final plan.