The following video is from Monday's installment of Where the Money Is, in which Fool analysts Matt Koppenheffer and David Hanson highlight for investors the most important stock news from the financial sector.
In this segment, Matt discusses an article from The Wall Street Journal, which addressed the conflicting motivations between banking regulators and the big banks. As the spread between the interest rate at which banks can borrow money and the interest rate they are able to get for lending, or the net interest margin, continues to compress, many banks have been reducing the amount of long-term debt they have been carrying, as that often has a higher interest rate. Matt tells investors what it would mean for the big banks if regulations are imposed that require a higher amount of long-term debt to be maintained on these banks' balance sheets in preparation for the next banking crisis.
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The relevant video segment can be found between 3:00 and 4:24 .