Delamaide: Rules push big banks to downsize

April 7, 2015 6:41 PM

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WASHINGTON — Financial regulators are not prone to gloating in public, but there is probably some private satisfaction among government officials that new rules are putting more and more pressure on the biggest banks to downsize.

Higher capital requirements and higher compliance costs for restrictions on derivatives and other speculative trading, combined with a low-interest-rate environment and huge penalties for infractions are squeezing profits at the big banks. This, in turn, is leading to shareholder pressure to divest ...

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