Federal Reserve Chair Jerome Powell's Thursday testimony focused in part on the Basel III capital rules, which banking institutions have pushed back on, citing costs and economic impacts. In response, Powell signaled the rules would undergo a broad overhaul. Chris Whalen, Chairman of Whalen Global Advisers, joins Yahoo Finance to discuss what changes to expect to Basel III.  Whalen highlights the flaw in Basel's design: "Basel is a very old construct. It was focused on credit risk originally, if you go back to the beginnings. And over time [the Fed] has tried to expand it to try and cover other kinds of risk. And I think the industry and many others have said, look, you're double counting. You're covering this and you're covering that, and you're really doing the same thing twice. So I'm hoping they're going to rationalize things a little bit and make things simpler." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino

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