Politicians often overreact to short term crises in ways that can make the economy worse off. The response by federal regulators to the rapid succession of bank failures last spring was certainly no exception to this rule. Despite the unique circumstances that led to the failure of SVB, Signature Bank, and First Republic Bank, it was enough for many to conjure up memories of the 2008 financial crisis. Never slow to capitalize on the fears of the populace, senate democrats have called on federal regulators to raise capital requirements for U.S. banks. In response, The Federal Reserve, with the Office of the Comptroller of the Currency and the FDIC have released their joint proposal for the U.S. implementation of the Basel III endgame regulatory framework earlier this year.