Why banks and consumer groups have become unlikely allies

• Banks are not alone in pushing against a regulatory package known as Basel III. 
• The regulation would require that banks hold more capital, which could curb growth, lenders say.
• Consumer groups have also warned about unintended consequences in areas like housing and manufacturing.

Proposed regulation requiring US lenders to hold more capital is facing pushback from industries that would typically applaud tougher bank rules.

In a rare show of solidarity with the financial industry, consumer groups are arguing for the dismissal of the Basel III rule proposal over concerns that it will lead to sector-wide consequences.