It’s Big vs Small as Banks Square Off to Avoid New Rules After Failures
- Regional lenders worry they can’t dodge new oversight now
- Lack of unity weakens influence on rules from battered sector
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US banks are pitted against each other as regulators move to strengthen oversight after a series of failures undermined confidence in the financial system.
In particular, regional banks, which are more likely to face new rules, are trying to convince regulators to increase oversight of larger ones — which may have to cover a larger portion of the costs of bailouts. Meanwhile, members of Congress facing public anger over wealthy depositors being made whole are less amenable than ever to lobbying pitches for weaker regulation.