According to Bloomberg.com, many of the United States’ largest banks aren’t happy with a recently proposed rule to increase the minimum capital a bank needs to hold against potential losses. Banks are saying the new…Read More
On Monday, the Basel Committee released a discussion paper dealing with the simplicity of the regulatory systems, leading some to take it as a sign that the committee may advocate simpler regulations in the future.
The first paper improves upon the interim credit assessment suggestions that the Basel Committee made with the Current Exposure Method (CEM) and the Standardised Method. The new credit risk assessment of counterparties in derivative trading fine-tune upon the CEM and the Standardised Method by creating separate risk exposure plans for margined and unmargined trades.
The European Union (EU) is pushing ahead with Basel capital standards to avoid delays. EU’s financial services chief, Michel Barnier, stated in an interview that, “We need agreed rules as soon as possible so that banks know which way they are going.”
The Basel Committee announced on Sunday that it plans to defang a rule that requires banks to maintain easy-to-sell assets.
CFTC Chairman Gary Gensler said on Monday that new rules mandating the margin needed to back uncleared swap trades will be announced early next year.
Despite industry groups’ efforts to prevent a move away from LIBOR as a benchmark rate for derivatives transactions, global regulators appear increasingly likely to do just that.