Forcing banks to raise more capital 'could hurt recovery'

Financial sector leverage modest compared to real estate

The banking system was much less leveraged in the run-up to the financial crisis than many believed, and economic recovery could be hampered if financial institutions are forced to raise more capital, according to a new report by the McKinsey Global Institute.

The view that an overly leveraged banking sector was the primary cause for the financial crisis is a canard, a study produced by the thinktank arm of management consultancy McKinsey has argued.

WSJ Logo
How Trump Got His ‘Big, Beautiful Bill’ Across the Finish LineExternal link

How Trump Got His ‘Big, Beautiful Bill’ Across the Finish Line