{"product_id":"2940013254824","title":"Basel III News, October 2011","description":"We had another interesting month.\u003cbr\u003e\u003cbr\u003eTo hope that some of the Basel iii rules will be more flexible is one thing. The belief that the Basel iii rules are anti-American is another.\u003cbr\u003e\u003cbr\u003eJamie Dimon, the Chief Executive Officer of J.P. Morgan finds the Basel III rules \"anti-American.\"\u003cbr\u003e\u003cbr\u003eIn an interview with Financial Times, Dimon said:\u003cbr\u003e\u003cbr\u003e\"I'm very close to thinking the U.S. shouldn't be in Basel anymore. I would not have agreed to rules that are blatantly anti-American\".\u003cbr\u003e\u003cbr\u003eMr Dimon has now some new friends and some new enemies. The Street columnist Glenn Hall, for example, said: \"Jamie Dimon appears to be suffering from a form of delusional paranoia that makes him believe everyone is out to get his bank.\" \u003cbr\u003e\u003cbr\u003eJean-Claude Trichet, the head of the European Central Bank, had another point of view:\u003cbr\u003e\u003cbr\u003e“I see resistance of some in the financial sector against Basel III. For me, it is crystal clear: what has been decided is decided” \u003cbr\u003e\u003cbr\u003eSo, what should Mr Dimon say?\u003cbr\u003e\u003cbr\u003eI believe he should say that European banks can use different accounting and modeling principles, and they may have a competitive advantage, so the American regulators must ensure that the standards in the States are similar to the European ones. \u003cbr\u003e\u003cbr\u003eBut there is no point to attach to the Basel iii framework, that already has been endorsed not only by the States, but also by the G20 leaders.\u003cbr\u003e\u003cbr\u003eAt the other part of the world, the Australian Prudential Regulation Authority announced a proposal that would require Australian banks to adopt the minimum capital requirement ratio two years ahead of the Basel iii timetable. \u003cbr\u003e\u003cbr\u003eAlso, they would implement the capital conservation buffer three years ahead of the Basel III’s schedule. \u003cbr\u003e\u003cbr\u003eOf course the Australian Bankers’ Association (ABA) does not like the idea of the accelerated timeline (no, they have not called it Anti-Australian yet).\u003cbr\u003e\u003cbr\u003eIn China, systemically important banks will be subject to a minimum capital adequacy ratio (CAR) of 11.5 percent; other banking institutions will be required to adhere to a minimum CAR of 10.5 percent. \u003cbr\u003e\u003cbr\u003eWe also had the next hit for the investment banking sector. UBS trader Kweku Adoboli is accused of fraud and two charges of false accounting. \u003cbr\u003e\u003cbr\u003eThe Financial Services Authority and its Swiss counterpart have asked for a \"comprehensive, independent investigation\" into the events that led to the trading losses at the bank's London operations. \u003cbr\u003e\u003cbr\u003eChancellor George Osborne found the opportunity to support the unique and very strict new measures in UK, AND speak about the need for a shake up of the banking sector in Britain. \u003cbr\u003e\u003cbr\u003eOh, not another hit. \u003cbr\u003e\u003cbr\u003eHe said:  “I draw two lessons. One is we need a better system of regulation, and that is why the British Government is proposing to give to the Bank of England much greater powers of supervision, so it can look across the piece at issues of stability and proper conduct in our banking system, and indeed we will have a financial conduct authority specifically looking at market abuse. ”\u003cbr\u003e\u003cbr\u003e “But also I take the lesson that John Vickers drew to our attention a few days ago which was: how do you protect retail banking from those kinds of activities in investment banking that we saw at UBS this week? ”\u003cbr\u003e\u003cbr\u003e “If you ever wanted a better example of why the kinds of ideas that John Vickers was putting forward were right for Britain, look at what happened at UBS just a few days later.”\u003cbr\u003e\u003cbr\u003eOh…\u003cbr\u003e\u003cbr\u003eThe FSA and the Swiss Financial Market Supervisory Authority said a third party would investigate the details of the alleged unauthorised trading activity and why the activities remained undetected.\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003eIMF Working Paper, August 2011\u003cbr\u003ePossible Unintended Consequences of Basel III and Solvency II\u003cbr\u003ePrepared by Ahmed Al-Darwish, Michael Hafeman, Gregorio Impavido, Malcolm Kemp, and Padraic O’Malley \u003cbr\u003e\u003cbr\u003eImportant parts\u003cbr\u003e\u003cbr\u003eEfforts to strengthen the quality of capital for banks and insurers through Basel III and Solvency II are well advanced. \u003cbr\u003e\u003cbr\u003eOn the one hand, the Basel Committee on Banking Supervision (BCBS), the organization responsible for developing international standards for banking supervision, adopted the Basel II framework in 2004 and, in response to the financial crisis, has taken steps to strengthen it in an incremental fashion to form what is now known the Basel III framework (BCBS 2009, 2011a, 2011b, and 2011c). \u003cbr\u003e\u003cbr\u003eOn the other hand, the European Commission (EC) is leading the Solvency II project, in close cooperation with the European Insurance and Occupational Pensions Authority (EIOPA), to develop harmonized standards for insurance supervision within the European Union.","brand":"Compliance LLC","offers":[{"title":"Default Title","offer_id":47162947895536,"sku":"2940013254824","price":0.99,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0737\/7593\/9824\/files\/2940013254824_p0.jpg?v=1763578606","url":"https:\/\/shop-qa.barnesandnoble.com\/products\/2940013254824","provider":"Barnes \u0026 Noble (DEV)","version":"1.0","type":"link"}