Morgan Stanley (MS)

How effective is Congress being in its banking regulations

Big Bank CEOs testified in front of the Senate Banking Committee on Wednesday as part of lawmaker's annual oversight of the financial sector, discussing the Federal Reserve's proposed Basel III Endgame provisions for capital requirements. Whalen Global Advisors Chairman Chris Whalen believes Congress' proposals appear to be misguided in lawmakers' attempts to rein in and regulate the banking industry. "The rationale for a lot of these changes is wrong, and I also think that, unfortunately, the Fed had an opportunity to work with the industry to really address current problems," Whalen tells Yahoo Finance. "But they keep coming back to capital." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.