Friday, September 23, 2011

Basel Committee to Reconsider Capital Surcharges

Basel Said to Weigh Bank Criticisms of Too-Big-to-Fail Capital Surcharge

The Basel Committee on Banking Supervision will next week consider the need for changes to capital surcharges on the biggest banks amid warnings from lenders that the measures may stymie the financial system’s recovery, according to two people familiar with the talks.
They must have read this:
The market is already imposing credit restrictions. Redundant capital restriction might be too much restriction. And the market will not cease to obey market laws; so the regulators ought to just let her do her thing.
Glad you're paying attention, guys.


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