Regional banks may need to raise significant amounts of additional debt to comply with new regulatory requirements, but the extra capital might not be enough to prevent future failures, according to research published Wednesday.
Eighteen regional lenders might need $63 billion of new holding-company debt to comply with rules by the Federal Deposit Insurance Corp., the Federal Reserve and the Office of the Comptroller of the Currency, according to a note by Bloomberg Intelligence analysts Arnold Kakuda and Nicholas Beckwith.