WASHINGTON, D.C.— Dennis Kelleher, Co-founder, President, and CEO, issued the following statement in connection with the release of a Fact Sheet outlining Wall Street’s “Ten False Claims About Capital” ahead of the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC) meetings on Thursday, July 27, when they are expected to propose capital requirements.

“Bank capital is critical to protect Main Street families, jobs, small businesses, community banks, the financial system, and the economy. That’s because capital is what large banks use to absorb their own losses and avoid taxpayer bailouts.However, maximizing Wall Street’s bonuses depends on minimizing capital and that’s why Wall Street fights to prevent regulators from requiring them to have enough capital. Of course, Wall Street’s banks can’t admit that, so they hide behind a smokescreen of false, baseless, and dangerous arguments against capital that do not withstand scrutiny. That’s why Better Markets is detailing how ten of their most common claims are in fact false, baseless, and dangerous.”

The following 10 false, baseless, and dangerous claims are addressed in detail in the fact sheet:

1. Higher capital requirements will increase the cost of credit, cause banks to reduce lending, hurt the economy and Main Street families.
2. The only way to implement changes to capital requirements is through the years-long rulemaking process.
3. Capital standards have been increased from 2008 levels and are...

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