Regulators ease Basel leverage ratio requirements


The Basel Committee for Banking Supervision has eased the way banks will have to report leverage ratios, or the amount of capital they hold against their loans and other assets.

The regulations will not force banks to count 100% of their off-balance-sheet assets, such as much of their exposure to derivatives, and guarantees and letters of credit.

That alterations will lower the need for banks to sell assets or raise capital to meet the Basel leverage-ratio requirements, which might be set at 3% or higher from 2018.

The Stoxx Europe 600 Banks index is +1.5%.

Major banks: RBS, HSBC, BCS, DB, CS, UBS, GS, JPM, C, MS, WFC, USB, BK, SAN, BBVA, LYG, NMR

ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, EUFN, IPF, SEF, IAT, IYG, PFI, FXO, IXG, KBWB, KME, RKH, QABA, KRU, FINU, RWW, KBWR, RYF, FNCL, PSCF, AXFN, KRS, FINZ, EMFN, KBWX

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Comments (2)
  • Storm Warning
    , contributor
    Comments (173) | Send Message
     
    Why bother counting at all?
    13 Jan 2014, 05:38 AM Reply Like
  • Momintn
    , contributor
    Comments (6053) | Send Message
     
    CS lost 12% of their assets in 2012. They have exposure to trading losses. They have been pumping shorts on IBM and repeating their sell rating in desperation, and I think they are going to continue to miss their earnings estimates. It appears to me that CS misses their analysts earnings estimate most of the time. The price target is $34 at S&P and the price now is $33, so if I owned it, I would be selling CS now. The EPS estimate for 4Q is .50 but in 2012 they missed it by -55%. Last quarter EPS was .19, and I think this quarter will be similar. Earnings estimates are way too high for 2013 and 2014 for Credit Suisse.
    13 Jan 2014, 10:45 AM Reply Like
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