New year same story: banks still slipping the noose of meaningful reform

“Over the weekend, global regulators agreed to substantially ease the new Basel III regulations and delay their full implementation by four years. The global liquidity standards were designed to ensure banks had sufficient capital on hand to survive another Lehman-like crisis, as well as require that capital be high-quality and liquid. There was a lot of fanfare from regulators when the regulations were first announced in 2010 — and a lot of gnashing of teeth from investors about how they would “cripple” the industry and potentially hurt economic growth.

After coming under pressure from the banking industry, global regulators agreed to loosen the definition of “high-quality liquid assets” to include highly rated residential mortgage-backed securities. “Ultimately, the negotiators agreed to let banks use less-traditional assets to satisfy up to 15% of their capital.”

Here is a direct link.

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3 Responses to New year same story: banks still slipping the noose of meaningful reform

  1. michael says:

    “Howling At The Moon”…..
    I found this definition, probaly from a tweener, to be very relevant……. “It means you are yelling at something just because you need to yell but no matter how much you yell it will not change the fact of whatever happened, or even give you a response back.”

    So very true. Collusive governments enabling corporate fraud at the expense of the citizenry . Is there an end in sight? The meaningful change needed to reform fraudueland will not be voluntary and it will not come about by legislation.

  2. John C says:

    Update:
    Regulators will soon allow bankers to include Tiffany gift cards in their bank’s tier one capital. House servants will be accepted as collateral in the interbank credit markets.

  3. JW says:

    Without being obvious, I guess this is how fast the Fed. can mop up the MBS. At least, the European banks are in the process of de-levering. For once, I would like to see the original MBS issuers take responsiblilties for their own products/actions. Or, is it too much to ask? Thanks. Langley, BC

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