The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Leaders of the world's largest economies, divided over how to curb risk-taking by their biggest banks, will likely fail to agree on a capital surcharge. Instead, the Financial Stability Board, which is weighing measures to prevent such institutions from causing another economic crisis, will recommend a range of options without setting a level of extra capital to be imposed globally, said members of the group who declined to be identified because the discussions are private. The FSB will meet in Seoul next week. The fissures running through the group are similar to those that split the Basel Committee on Banking Supervision when it considered tighter capital requirements for all banks this year. Germany, France and Japan are resisting a surcharge for big lenders, as are lobbyists for those firms, while the U.K., U.S. and Switzerland advocate the approach, members say. That camp agreed to soften some of the Basel capital rules with the understanding that more would be done to restrain the largest banks through the FSB.
Instead, the Financial Stability Board, which is weighing measures to prevent such institutions from causing another economic crisis, will recommend a range of options without setting a level of extra capital to be imposed globally, said members of the group who declined to be identified because the discussions are private. The FSB will meet in Seoul next week.
The fissures running through the group are similar to those that split the Basel Committee on Banking Supervision when it considered tighter capital requirements for all banks this year. Germany, France and Japan are resisting a surcharge for big lenders, as are lobbyists for those firms, while the U.K., U.S. and Switzerland advocate the approach, members say. That camp agreed to soften some of the Basel capital rules with the understanding that more would be done to restrain the largest banks through the FSB.
by ARGeezer - May 24 4 comments
by DoDo - May 25 1 comment
by DoDo - May 23 43 comments
by Nomad - May 10 14 comments
by JakeS - May 15 7 comments
by Metatone - May 14 85 comments
by ARGeezer - May 16 15 comments
by gmoke - May 17 2 comments
by DoDo - May 251 comment
by ARGeezer - May 244 comments
by DoDo - May 2343 comments
by gmoke - May 172 comments
by ARGeezer - May 1615 comments
by JakeS - May 157 comments
by Metatone - May 1485 comments
by DoDo - May 1211 comments
by Nomad - May 1014 comments
by Migeru - May 78 comments
by marco - May 782 comments
by Migeru - May 6100 comments
by Ted Welch - May 35 comments
by afew - May 341 comments
by ceebs - May 26 comments
by gmoke - Apr 301 comment
by Frank Schnittger - Apr 3067 comments
by joelado - Apr 2954 comments
by Metatone - Apr 2854 comments
by ATinNM - Apr 275 comments