Dems call for removal of top banking regulator

{mosads}Brown joins three other Democratic senators in calling for Walsh’s ouster as head of the banking regulator. 

On Wednesday, fellow Senate Banking Committee members Jack Reed (R.I.) and Jeff Merkely (Ore.) called on the president to replace Walsh. And Sen. Carl Levin (Mich.), who chaired the Senate investigative panel that explored the financial crisis, similarly has called for new leadership at the Office of the Comptroller of the Currency (OCC).

The pushback from Democrats was ignited after Walsh delivered a speech in London Tuesday that called for “modest” additional capital requirements for large financial institutions that would supplement additional capital requirements being hashed out internationally as part of the Basel III agreement.

Walsh said capital levels now stand at “extraordinarily high” levels by historical standards, and regulators should be careful to not push requirements to a point that stifles economic growth.

“Higher capital fosters a safer banking system, but if carried too far, the economy suffers,” he said.

The OCC has pushed back against the criticisms, saying Walsh agrees with increased capital requirements and was merely airing warnings about going too far.

“The speech urged caution about the cumulative effect of many new requirements and about going too far to a point where restrictions inhibit banks from meeting the credit needs of citizens, communities and businesses,” said an OCC spokesman.