Today, Kevin Fromer, President and CEO of the Financial Services Forum, spoke on Bloomberg TV about the negative impacts of Washington's capital regulation plan, which will be an important part of tomorrow's Senate Banking hearing with the CEOs of the nation’s largest banks.

• Fromer warned about the impact the proposal will have across the economy: "It will have a significant impact on consumers and small businesses and corporate customers, farmers, everybody across the economy. Everybody that does business and relies on these institutions for that work and the economy as a whole that relies on these institutions."
• He discussed the significant strength of the largest U.S. banks: "There is no evidence we need more capital in these institutions now … We have been through many, many years of activity where these institutions have encountered everything you can throw at them and they have been operating with more than enough capital to deal with all these things."
• He highlighted how the proposed regulation will create additional risk by moving activity to less regulated parts of the economy: "It will affect the pricing or the economics, or it will move the activity outside of the regulator banking sector altogether. We have seen that secular trend for a long time...That does not mean the risk went away. It just leaves the banking system and goes to another part of the financial system."

Kevin's comments are a part of a growing number of local and national voices urging Washington to recognize that Americans can't afford increases in bank capital requirements.