In the most significant news over the weekend, the Basel Committee announced that it was backing off from the implementation of the 2015 enhanced capital requirements for banks. Under the original Basel III requirements, global banks were going to have to have enough LIQUID ASSETS to be able to sustain a possible financial crisis of 30 days. The ability to sell assets to meet a possible run meant that banks would be forced to hold a larger amount of high quality, easily sellable assets. European banks have been clamoring for relief from the new capital rules for fear that the new standards would create less bank lending as banks rushed to shore up their balance sheets. U.S. banks were supporting the lobbying efforts by the European banks and thus the Basel Committee showed forbearance and lessened the possible impact by extending full compliance with the new regs out until 2019.
Posts Tagged ‘Italian 10-year’
Notes From Underground: The Basel Accord Gets Watered Down. What Are The Potential Impacts?
January 8, 2013Notes From Underground: Hey S&P! GOLD DOWNGRADED THE U.S. LONG AGO
August 7, 2011… AS USUAL, YOU ARE 3 STANDARD DEVIATIONS OF TIME LATE
Readers of Notes From Underground are aware of my total disdain for the three major rating agencies as they have sold their souls to the Wall Street money machine years ago. In an effort to regain some lost innocence, they are attempting to downgrade the nation-states of the world prior to economic calamity. The people at S&P were determined to downgrade the U.S. even when the U.S. Treasury pointed out that their math was flawed and the deficit going forward was off by a mere $2 trillion. Why should I put any value in a rating group that cannot even do the maths correctly and admit they were off by $2 trillion. Do we rally need the whores at S&P to tell us that the U.S. is a problem? Hey, GOLD is trading $1665. Don’t you think the market has already done its ratings?