The U.K.’s Financial Services Authority and the Bank of England have come under heavy criticism for proposing that domestic banks double the capital ratio adopted proposed the Basel Committee on Banking Supervision to 15% to 20%. Among the critics is Davide Sierra, founding partner of Algebris, an asset management firm, who warned that higher capital “will just lead to higher mortgage and credit card costs for everyone.” One hedge fund investor said, “The U.K. is going mad,” suggesting that regulators’ view is, “We can’t police the banks, so let’s build a massive wall to protect ourselves instead.”

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