Banks Get One-Year Reprieve On Tougher Standards As “G-20” Members Kick The Can Down The Road
Posted By thestatedtruth.com on November 12, 2010
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The world’s largest banks won a reprieve of at least a year before facing extra measures that would force them to rein in risk as divisions within the Group of 20 nations delayed an agreement on such rules.
The Financial Stability Board, which brings together G-20 finance ministers, regulators and central banks, told leaders meeting in Seoul earlier today that steps to prevent the collapse of systemically important financial firms will be suggested by the end of 2011. The G-20 had asked for a proposal by the end of this year.
Divisions between Basel committee members, as well as lobbying by banks, led to the softening of the capital rules and put off final decisions about liquidity standards.
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