"There is a trade-off between holding capital and the ability to lend," said Scott Talbott, a senior lobbyist for the Financial Services Roundtable. "Our concern is that as you take a look at all the regulations in totality, you will decrease the banks' ability to help the economy."
The Fed on Monday said that while big banks have made progress in preparing for strains like those brought by the 2008 financial crisis, they also need do a better job determining how much capital they need to cushion against a future crisis. The Fed's report, based on stress tests applied to the banks, coincided with Obama's meeting with regulators.
Associated Press Economics Writer Martin Crutsinger contributed to this article.
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