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The Fed is said to be in favor of a Basel III proposal calling for a maximum capital surcharge...

The Fed is said to be in favor of a Basel III proposal calling for a maximum capital surcharge of three percentage points on the largest global banks; financial stocks took a beating yesterday on fears the surcharge might run as high as 7%.
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Comments (3)
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    This will have a devastating affect on European banks and a dampening effect on global finance. I am not say that it is not appropriate but there will be negative consequences as a result. Basel III was casting uncertainty over the financial sector even before these proposals. US financial institutions are better positioned to withstand the effects. The result is likely to be further industry consolidations through divestitures of marginal business units.
    7 Jun 2011, 07:14 AM Reply Like
  • bbro
    , contributor
    Comments (10150) | Send Message
     
    The reporting on this is lacking in detail...Is the surcharge on risk weighted assets???....Is it due in 2019?? I wish reporters would
    explain more to the investing public.
    7 Jun 2011, 08:03 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    I believe that after reading a couple of articles this morning that the answer to your question is still up in the air and that is adding to the market anxiety.
    7 Jun 2011, 08:08 AM Reply Like
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