24 July 2014

Trading & Risk Technology

Derek Klobucher - Sybase Inc.

29 | posts 88,838 | views 0 | comments

An Industry Win Over Liquidity Buffers

10 January 2012  |  2371 views  |  0

Chalk up a victory for the financial services industry last weekend in its resistance to higher capital requirements under Basel III. Institutions would still have to maintain significant buffers to prevent another round of government bailouts, but they could dip into these high-quality assets when times get tough enough.

“During a period of stress, banks would be expected to use their pool of liquid assets, thereby temporarily falling below the minimum requirement,” stated the Group of Governors and Heads of Supervision in Reuters. GHOS directs the Basel Committee on Banking Supervision, driver of Basel III reforms.

The committee’s concession is due in part to financial industry arguments that surcharges would impair institutions’ ability to lend. But a report late last year found that the benefits of buffers outweigh their damages.

The eventful weekend also saw all 27 nations comprising the Basel committee agree to peer review of their Basel III implementation. The U.S. may have been shirking its duties under the accord, “leading other members to question why they should abide by them,” noted The Telegraph.

If Basel III implementation wasn’t enough, U.S. authorities are also having difficulty meeting Dodd-Frank deadlines, according to a progress report by law firm Davis Polk & Wardwell. As we rang in 2012, 149 of the 200 rules thus far have seen due dates come and go without. And chalk up another 200 rules that are still awaiting their deadlines.

TagsTrade executionRisk & regulation

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Derek

Dodd-Frank Stands Technically Corrected and Small Banks Lose

17 December 2012  |  2934 views  |  0  |  Recommends 0 TagsRisk & regulation

Too Big To Fail Makes a 'Fine' Mess

13 December 2012  |  2388 views  |  0  |  Recommends 0 TagsRisk & regulation

Lighting Up Dark Pools and Dissing Dodd-Frank

21 November 2012  |  3535 views  |  0  |  Recommends 0 TagsTrade executionRisk & regulation

Regulatory Reform: The System, Not The Software

16 November 2012  |  2222 views  |  0  |  Recommends 0 TagsTrade executionRisk & regulation

Devil in Dodd-Frank's Details

04 October 2012  |  2603 views  |  0  |  Recommends 0 TagsTrade executionRisk & regulation
name

Derek Klobucher

job title

Financial Services Writer and Editor

company name

Sybase Inc.

member since

2011

location

Dublin

Summary profile See full profile »
Generate and edit thought leadership content for Sybase's annual Capital Markets Guide, quarterly...

Derek's expertise

What Derek reads
Trading and Risk Technology
Derek's blog archive
2012 (11)2011 (18)

Who is commenting on Derek's posts