Banks contest new leverage limit rule.

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 minimum– 5 percent for holding banks and 6 percent for their actual banking...

Basel Committee May Rethink Regulatory Complexity

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. In the paper, they discuss several current aspects of regulation such as risk sensitivity,...

Basel Committee Reform Capital Rules of Derivatives Trading

On June 28th, The Basel Committee came out with two papers that recommend strengthening the regulatory oversight of counterparty credit swaps to decrease the alleged risk of derivative transactions. The first paper improves upon the interim credit assessment suggestions that the Basel Committee made with...

Basel III Rules Slated for March Deadline, EU Says

The European Union (EU) is pushing ahead with Basel III capital standards to avoid delays. Bloomberg reports that the 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.” March 22...

The Basel Debate: Regulators Allow Increased Risk to Maintain Growth

The Basel Committee announced on Sunday that it plans to defang a rule that requires banks to maintain easy-to-sell assets. They committee also extended the compliance date to 2015, at which time banks will only be required to meet 60% of the required liquidity. The liquidity coverage ratio (LCR) has been...

New Margin Rules for Swaps in 2013

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. The announcement comes only a day after a U.S. District Court struck down the CFTC’s rule on position limits. “I would anticipate that the CFTC, in...

Move Away from LIBOR Would Hurt Banks

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, people with knowledge of the matter say. With many banks already having switched to overnight-indexed-swap rates for valuing...