Kashkari Renews Call for 20% Capital

In a new FT op-ed, FRB-Minneapolis President Kashkari refutes longstanding Board assertions that banks were a source of strength in the COVID crisis, countering that they were as much bailed out by fiscal support as the overall economy.  Researchers at his Reserve Bank estimate that bank losses without this fiscal support would have been between at least $100 billion and $300 billion.  Interestingly, the Minneapolis Fed has also created a crowd-modelling tool that allows others to enter their own scenarios to calculate likely bank loss.