The proposed doubling of bank (XLF) minimum leverage ratios to 6% isn't a big deal, says Credit...


The proposed doubling of bank (XLF) minimum leverage ratios to 6% isn't a big deal, says Credit Suisse, noting COF, WFC, PNC, and UBS are already above that level. The three with the lowest current levels (4.6% to 5.1%) - C, JPM, BAC - wouldn't have an issue getting to 6% if necessary. CS also notes the likelihood it won't be 6%, but instead a number well underneath.

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Comments (6)
  • spinrbait
    , contributor
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    i think this is more for some representatives to fill up campaign coffers through lobbyists from the banks. there is no real intention of trying to pass this, imo
    1 Jul 2013, 01:05 PM Reply Like
  • gwynfryn
    , contributor
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    Whatever, if it's a level playing field, it harms no one!
    2 Jul 2013, 09:32 AM Reply Like
  • BrianLT
    , contributor
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    If they do pass this then they are asking for our economy to be slow in recovery. Every down turn in the last 100 years has been slowed by regulators over reaction.
    2 Jul 2013, 05:18 PM Reply Like
  • gwynfryn
    , contributor
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    Bri, I'd say that's a good thing; what's wrong with stability? These growth cycles may be great for capitalists, but they're a pain for the real wealth producers!
    3 Jul 2013, 07:21 AM Reply Like
  • herschfields
    , contributor
    Comments (126) | Send Message
     
    I am with you gwynfryn, a little stability of such would offer a little comfort on the way up, and I do believe the upward trend for the financial sector is enviable and will gain strength with the continued recovery.
    5 Jul 2013, 11:59 AM Reply Like
  • BrianLT
    , contributor
    Comments (2) | Send Message
     
    gwy: I would agree this capital requirement would be a good long term stable policy, yet regulators won't leave it alone when the economy is growing again. History tells you they will get lenient with this again at the wrong time. It is just the cycle, the regulators get tight in downturns and lenient in up turns. The individual regulators in the field who are afraid they may look bad again if they allow any lender to take any risk is more of a deterrent to long term steady growth right now. Don't expect our economy to grow any reasonable amount until these individual regulators retire (10 years from 2008).
    21 Oct 2013, 02:26 PM Reply Like
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