Goldman Sachs CEO attacks proposal for banks to hold more capital

David Solomon, CEO of Goldman Sachs, has attacked a recent proposal from regulators that would require banks to raise their capital on the books by 16% to prevent risks of collapse, such as what occurred at Silicon Valley Bank, according to a Yahoo! Finance report.

The Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency proposed the capital requirement increase, which Solomon argued at the Financial Times banking conference would cause banks to reduce services and/or raise fees. He is also concerned it would impact a bank's ability to lend out securities.

"I don't think you're materially changing the safety and soundness in the way that matters compared to the friction and cost," Solomon said in a Bloomberg report. "You have to do a really thorough cost-benefit analysis, and I don't think that's been done."

These rules would be in effect in 2028 if passed.