In the United States, the Dodd-Frank Act, passed in 2010, requires bank holding companies with more than $50 billion in assets to abide by stringent capital and liquidity standards and it sets new restrictions on managerial incentive compensation.

(Btw, it there any relationship between capital and liquidity standards and restrictions on managerial incentive compensation?)

Critically evaluate the arguments for and against the stringent capital and liquidity standards and restrictions on managerial incentive compensation in the banking sector.