- Discussions are at an early stage, but Basel is looking at ending traditional banking industry practice of treating government paper as risk-free after the European PIIGS proved the debt is anything but. A change could potentially force lenders to raise billions in additional capital.
- Needless to say, bankers aren't pleased, but sovereigns - used to having banks being large happy holders of their debt - are likely going to be pushing against any rule change as well. In Europe, Italian banks own more than €400B of Italian government debt, while Spanish lenders own nearly €300B of their country's sovereign paper.
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
at CNBC.com (Jan 16, 2015)