Big banks continue to try and change the rules for their gain. Now they are trying change the new capital requiements, so once again over leveraged bets can be done. Read below for full story.
Stock Market News – Big Banks Once Again Pushing For Overleveraged Bets..
Unbias Stock Market News -
US banks are making a last-minute push to ease new global liquidity requirements, arguing that they would need to come up with an additional $800 billion in easy-to-sell assets under the proposed standards.
The banks argue that they have increased their holdings of liquid assets by $700 billion – or about half the $1.5 trillion shortfall identified in the US at the end of 2010. Rather than raising the difference, they want to relax new Basel III bank safety rules.
“The US banking industry is significantly more liquid than it was even just two years ago,” said Bob Chakravorti, chief economist at the Clearing House, which represents the 11 largest US commercial banks.
“With certain recalibrations to the proposed Basel III requirement that are more reflective of market conditions, the industry would meet the proposed liquidity requirement and be well positioned to withstand a future financial shock.”
A report by the Clearing House, which will be released today, was shared with the Basel Committee on Banking Supervision before it met last week to discuss revisions to the global liquidity rule known as the liquidity coverage ratio. The standards must be approved by central bankers and supervision heads from the committee’s 27 member countries.
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