Kashkari Urges Big Investors to Demand Banks Hold More Capital
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Big investors who own shares in and trade with the country’s largest banks should push lenders to reduce risks in the financial system by increasing capital levels, Federal Reserve Bank of Minneapolis President Neel Kashkari said.
“Why am I coming to you? Because you are uniquely positioned to drive much-needed reforms in the banking sector and the broader financial markets that have proven so fragile,” Kashkari said Friday in remarks prepared for a virtual event with the Council of Institutional Investors, an association of large investors managing approximately $4 trillion of assets for pension funds, foundations and endowments.