The Pacific Investment Management Company, LLC joined the chorus of firms and regulators that are raising concerns about international efforts to increase capital buffers and reduce leverage at the largest banks. In a viewpoint published online, PIMCO raised concerns regarding requirements that force banks to hold significant capital to support derivatives trading by their clients, “even when banks are merely functioning as conduits.” PIMCO argued that if banks find the costs “to perform vital functions around derivatives trading too costly,” they will either pass on the costs or exit the clearing business. “Already, we have seen both, and neither is desirable,” it says.