These companies were seen as too big to fail so they were guaranteed to stay alive by the government, this definitely interferes with the idea of capitalism.

Everything you see is fake stimulation of the economy including the interest rates being at 1 percent right now which will attempt to set up another boom cycle after the credit markets start to open again.

1. improve the banking sector’s ability to absorb shocks arising from financial and economic stress, whatever the source
2. improve risk management and governance
3. strengthen banks’ transparency and disclosures.

The reforms target both micro and macro prudential regulation.

Micro Prudential Regulation

At bank-level, or microprudential, regulation, they will help raise the resilience of individual banking institutions to periods of stress. Practically, these reforms mean:

A significant increase in risk coverage, with a focus on areas that were most problematic during the crisis, that is trading book exposures, counterparty credit risk, and securitisation activities;

A fundamental tightening of the definition of capital, with a strong focus on common equity. At the same time, this represents a move away from complex hybrid instruments, which did not prove to be loss absorbing in periods of stress. We also introduced requirements that all capital instruments must absorb losses at the point of non-viability, which was not the case in the crisis;

The introduction of a leverage ratio to serve as a backstop to the risk-based framework;
The introduction of global liquidity standards to address short-term and long-term liquidity mismatches; and

Enhancements to Pillar 2’s supervisory review process and Pillar 3’s market discipline, particularly for trading and securitisation activities.

Macro Prudential Regulation

In addition, a unique feature of Basel III is the introduction of macroprudential elements into the capital framework. At macroprudential, they wlll help to deal with system wide risks that can build up across the banking sector as well as the procyclical amplification of these risks over time. These include:

Standards that promote the build-up of capital buffers in good times that can be drawn down in periods of stress, as well as clear capital conservation requirements to prevent the inappropriate distribution of capital;

The leverage ratio also has system-wide benefits by preventing the excessive build-up of debt across the banking system during boom times.

To minimise the transition costs, the Basel III requirements will be phased in gradually as of 1 January 2013.

These two approaches to supervision are complementary as greater resilience at the individual bank level reduces the risk of system wide shocks.

Basel III is part of the Committee’s continuous effort to enhance the banking regulatory framework. It builds on the International Convergence of Capital Measurement and Capital Standards document (Basel II).

Sources

Basel III: stronger banks and a more resilient financial system
Speech by Stefan Walter, Secretary General, Basel Committee on Banking Supervision, at a Conference on Basel III by the Financial Stability Institute, Basel, 6 April 2011.

International regulatory framework for banks (Basel III)
Available at: http://www.bis.org/bcbs/basel3.htm

Prepared by: Rajnish Ramchurun
B.Sc(Hons), MBA, ACCA, MIPA, Associate ACFE, Basic Member OCEG, Member Basel III Compliance Professionals Association, IFAC Online Registered User, AICPA Online registered User, IFRS Online Registered User.

These were two very different announcements. For the rest of the story on the trucking regs., I recommend you read this article: http://www.americanthinker.com/2011/08/strange_friends_of_the_new_epa_trucking_regulations.html

It is the tax payers and the entrepreneurs that will be left holding the bag on the new trucking regs.

We thought google was the king before facebook has proved to be a competitor

Someone else will come in shortly

In todays world, Greed is not good. Also public memory is short with herd mentality. If some move everyone moves

May hay while the sun shines. But i guess nowadays ppl wait for the sun to burn their hay. SAD!

I get a smile when greedy people get what they deserve. NOTHING!