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Higher capital levels, for instance, mean a hit to bank profits.
He also said the commission should review its rules that set minimum capital levels for brokerage firms that belong to futures clearinghouses.
That would be on top of their proposed minimum capital levels for all banks, currently set at 7 percent of assets.
Officials insist the idea is to find ways to meet the costs of future crises and introduce higher capital levels for risky institutions which they say addresses the problem of banks that are "too big to fail".
American regulators have yet to align themselves on the issue, with Ms. Bair pushing higher capital levels for the largest banks and Mr. Walsh, who oversees national banks, urging caution as talks over rules continue.
A report in The Wall Street Journal that the Federal Reserve would rebuff pressure from American banks and go along with international recommendations on capital levels for banks also affected the markets, analysts said.
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That is in addition to the proposed minimum capital levels of 7 percent of assets for all banks under the Basel III rules, which are to be phased in gradually through 2018.
On a pro-forma basis at the end of last year, we exceeded our regulatory requirements and internal targets for capital levels.
APOCALYPTIC predictions about continental European banks' capital levels have been made for some time, usually by people across the Atlantic or English Channel.
The Financial System Inquiry report singled out bank competition, increased capital levels and inefficient taxes for reform.
Opening hedge funds to larger numbers of people allows the funds to maintain capital levels yet reduce the minimum for each investor.
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