What would be the systemic benefits to implementing regulations that reduce bank leverage

http://www.cnbc.com/id/100880857

Respond in no more than two well-developed paragraphs to the following question:

What would be the systemic benefits to implementing regulations that reduce bank leverage? . . . What would be the costs of regulations that reduce bank leverage? . . .

For each discussion activity, an initial response of approximately 500-750 words is required. Responses to the prompt should thoroughly, yet concisely, address each element of the discussion prompt. When appropriate, informal in-text citations as well as informal bibliographic entries (at the end of the post) should be used. External sources may also be utilized. When posting, students will be unable to view classmates’ contributions until they have made a post to the forum. There is no requirement for student interaction via the forum, as significant class time will be set aside for in-class discussion. Discussion contributions will be graded using the rubric below. Late submissions to discussion are not accepted for credit.