Basel problems
The Federal Reserve is walking back a plan to raise the amount of capital America’s biggest banks are required to hold, after intense pushback from the banking industry.
Fed now plans to require big banks to increase the reserves they hold against losses by 9%
Earlier proposals would have increased them by an estimated 20%.
Banks holding less than $250 billion in assets—meaning most banks in the country outside of the very biggest—now won’t be subject to most of the new capital rules, except for lenders with large trading operations.
The backpedaling represents a win for the banking industry, which has been fighting against the new capital rules for well over a year. Their success represents a shift in the balance of power between big banks and their regulators, turning the page on an era in which the Fed held the upper hand.
Wall Street Journal 10 September 2024
https://www.wsj.com/finance/fed-backpedals-on-plan-to-increase-big-bank-capital-21ace35c
EU skjuter upp nya bankregler
Planen var att EU den 1 januari 2025 skulle implementera de globala bankreglerna Basel III.
Dessa ställer bland annat krav på bankernas kapital, i syfte att undvika en finanskris liknande den som utbröt år 2008.
https://englundmacro.blogspot.com/2024/06/eu-skjuter-upp-nya-bankregler.html
Federal Reserve dialing down proposals for how much capital banks will have to hold against certain assets — just as banks signaled that the performance of some assets is set to worsen.
Their statements will likely stoke debates over whether the industry will experience a soft-landing as interest rates tick down,
and whether proposed rules are tough enough for worst-case scenarios over the longer term.
Bloomberg 10 September 2024
“Dad, what’s a financial crisis?”
One of Jamie Dimon’s daughters called him up from school with a question more than a decade ago: “Dad, what’s a financial crisis?”
The billionaire who runs JPMorgan Chase & Co. tried to put her at ease.
“It’s the type of thing that happens every five to seven years,” he told her, he later testified to the Financial Crisis Inquiry Commission.
https://englundmacro.blogspot.com/2024/05/dad-whats-financial-crisis.html
Big Banks Are Supposed to Fail Without Causing Panics.
Is That Even Possible? - Living wills
https://englundmacro.blogspot.com/2023/08/big-banks-are-supposed-to-fail-without.html
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