Wall Street CEOs Want the Line Between a Federally-Insured Bank and a Wall Street Trading Casino Erased; Regulators Want Higher Capital to Prevent That

David Solomon, Chairman and CEO of Goldman Sachs, let it slip out at yesterday’s Senate Banking hearing what is really driving the mega banks’ backlash against federal banking regulators’ proposal to raise capital requirements at banks with more than $100 billion in total consolidated assets. (Community banks would not be impacted by the proposed capital increases.)