By: Senate ‘Break Up The Banks’ Bill Draws Wall Street Scorn

Senate ‘Break Up The Banks’ Bill Draws Wall Street Scorn — Tue, 09 Apr 2013 11:36:03 +0000

[...] Perhaps more importantly, Brown-Vitter eliminates many of the loopholes that currently exist in capital standards that allow banks to exempt some assets from the total and include some types of debt as capital. While the international capital standards, agreed to under the Basel III accord in the wake of the crisis, require banks to hold at least 7 percent of their risk-weighted assets in so-called Tier 1 Capital, only 3 percent of total assets must be reserved in hard equity. While the 3 percent minimum is stricter than the standards in place prior to the crisis, it would not have affected the sort of risk-taking in which banks, including Lehman Brothers, engage…. [...]

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By: Senate ‘Break Up The Banks’ Bill Draws Wall Street Scorn