As noted earlier today on the blog, new rules regarding large banking firms and capital requirements have caused quite a stir in the financial world.

The Atlantic’s Clive Crook details his new article for Bloomberg on the new changes.

Money quote:

What might their real reasons be? If banks sell more shares, it’s true that the return on equity will fall. If managers’ pay is tied to return on equity (as it often is), they will be worse off. Shareholders, on the other hand, shouldn’t mind, because the risk of their investment is reduced in proportion. Taxpayers, of course, would be better off — less likely to be stuck at some point with the cost of bailing out the bank.

Crook makes essentially the same claims Yglesias made earlier today.