Jun
09
Banks Gain Ground in Drive to Change Derivatives Capital Rules
By-
Basel leverage rule said to punish banks for handling trades
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IOSCO head joins Bank of England, EU officials seeking change
The world’s biggest banks have argued for years that capital rules punish them for handling clients’ derivatives trades. All that lobbying is starting to pay off.
The European Union’s financial-services chief, Jonathan Hill, and members of the bloc’s parliament recently joined the Bank of England in saying the global capital standard needs to be fixed. At issue is the Basel Committee on Banking Supervision’s restriction on bank leverage, which forces lenders to have capital against billions of dollars in collateralized trades done by clients and settled at clearinghouses…
Banks Gain Ground in Drive to Change Derivatives Capital Rules
