Bloomberg reported that U.S. bank regulators are preparing to unveil a comprehensive overhaul of capital rules next week. The draft includes changes to the Basel III regulations implemented after the financial crisis. Bloomberg has learned that the proposed changes include requirements for large lenders' residential mortgages that exceed international standards. - Through the new changes, The Fed, FDIC, and the Office of the Comptroller of the Currency aim to avoid providing an unfair advantage to big Wall Street banks over smaller competitors.
- Bloomberg believes the proposal will likely invite criticism as the industry could view it as a measure to "gold plate" U.S. requirements by exceeding global standards.
- Bloomberg has learned from its sources that the regulators are proposing a 20 percentage points increase in risk weights for residential mortgages compared with the international standards.
|
