Net Net: Promoting innovation and managing change
Net Net: Promoting innovation and managing change

Are We All Reaganites Now?

The fight over capital requirements for the banking sector is bringing together a strange set of bedfellows.

On the one hand, we’ve got liberal critics of banks like New York Times op-ed columnist Joe Nocera and economist Simon Johnson arguing that big banks need more capital. On the other hand, we’ve got the conservative Wall Street Journal editorial board arguing exactly the same thing.

One of the most interesting bits of convergence between these views is the rejection of the idea that the US should hold back on requiring more capital for reasons of international competitiveness.