US financial regulators have been working on what’s optimistically known as Basel III Endgame – the long, slow effort to reform global banking rules following the crash of 2008. They’re apparently getting cold feet. After strong pushback from the banking industry, Federal Reserve Chairman Jerome Powell recently said the proposal regulators announced last summer is going back to the drawing board. That’s where it belongs, but not because it’s too demanding. Quite the opposite.

The proposal calls for higher capital requirements for big banks and banks that trade a lot of securities. The increases are too small. More important, they ignore a better approach to banking risk. More than 15 years after the crash, the effort to make banking as safe as it should be is stumbling yet again.

QOSHE - The Fight Over Bank Capital Keeps Missing the Point - Clive Crook
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The Fight Over Bank Capital Keeps Missing the Point

10 1
25.03.2024

US financial regulators have been working on what’s optimistically known as Basel III Endgame – the long, slow effort to reform global banking rules following the crash of 2008. They’re........

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