Big banks gear up for Fed fight

By Zachary Warmbrodt

The looming fight is over bank capital — the tool regulators use to ensure lenders have enough of a funding buffer to sustain operations during bad times. It can be more complex than blockchain, and getting it right has huge ramifications for the economy. It requires officials to strike a balance between averting the next financial crisis — which could be triggered by a proverbial unknown unknown — while not limiting banks so much that it holds back growth….Every decision a bank makes first factors capital costs or benefits,” Federal Financial Analytics managing partner Karen Petrou wrote earlier this month.