A Case Study: Capital Rules That are Equitable as Well as Resilient
Although little-noticed, the Biden Administration’s new, public-good regulatory paradigm is a game-changer.  I’ve laid out “should-do” arguments in a memo/op-ed and a how-to in a new blog post.  Some of you have countered with reasonable fears of over-reach and regulatory burden and it will indeed be critical to make clear that crippled companies can do no good.  However, even if this new regulatory construct is a bit more burdensome, it has considerable upside for financial-services firms.  Below, an example based on capital regulation to show both why and how.

M012921.pdf