The top bosses of JPMorgan, Morgan Stanley, Citigroup and other Wall Street banks will warn lawmakers that capital hikes and new regulations will hurt the economy, according to prepared congressional testimony published yesterday, Reuters reported. The CEOs of the country's eight largest banks will appear before the Senate Banking Committee today. The hearing comes amid a fierce industry campaign to kill the "Basel Endgame" proposal, which overhauls how banks must calculate their loss-absorbing capital, and as regulators roll out fair lending and fee cap rules, among other consumer rules. The Basel rule, which is being drafted by bank regulators led by the U.S. Federal Reserve, would "unjustifiably and unnecessarily" increase capital requirements by 20% to 25% for the largest banks, forcing them charge more for services or stop offering them altogether, Dimon warned.
