{"id":188499,"date":"2010-09-15T19:16:00","date_gmt":"2010-09-16T00:16:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/09\/15\/basel-iii\/"},"modified":"2010-09-15T19:16:00","modified_gmt":"2010-09-16T00:16:00","slug":"basel-iii","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/09\/15\/basel-iii\/","title":{"rendered":"Basel III"},"content":{"rendered":"<div style=\"border: 1px solid black; margin: 0px 10px; padding: 5px; width: 400px; float: right; text-align: center;\">Click for full size<\/p>\n<hr \/>\n<p><a href=\"http:\/\/img543.imageshack.us\/img543\/6888\/basel4310293.jpg\"><img decoding=\"async\" src=\"http:\/\/img543.imageshack.us\/img543\/6888\/basel4310293.jpg\" bordercolor=\"white\" border=\"0\" width=\"390\" \/><\/a> <span style=\"font-style: italic;\">Additional Capital Requirements<\/p>\n<p><a href=\"http:\/\/img824.imageshack.us\/img824\/4701\/phaseinarr4317253.png\"><img decoding=\"async\" src=\"http:\/\/img824.imageshack.us\/img824\/4701\/phaseinarr4317253.png\" bordercolor=\"white\" border=\"0\" width=\"390\" \/><\/a><br \/>Phase In Schedule<br \/><\/span><\/div>\n<p>I&#8217;ve been looking at the Basel III international banking proposals, and I find them rather weak tea.<\/p>\n<p>The <a href=\"http:\/\/ftalphaville.ft.com\/blog\/2010\/09\/12\/340356\/basel-iii-has-landed-full-details\/\">10\u00a2 tour of the proposal is that<\/a> they are requiring more capital, 4.5% tier 1 capital (basically capital that can be redeemed for cash in a market essentially immediately), a further capital conservation buffer, and a &#8220;counter-cyclical&#8221; buffer that would kick in when times are good.<\/p>\n<p>This will all be phased in over a 5 year period starting in 2013.<\/p>\n<p>As to what it all means, I agree with Yves Smith that, &#8220;<a href=\"http:\/\/www.nakedcapitalism.com\/2010\/09\/this-is-basel-iii.html\">the reality is that a Basel III world will not look hugely different to the one from which the last crisis sprang<\/a>.&#8221;<\/p>\n<p>In particular, there is next to nothing on synchronizing accounting standards, which will send banks to places where they can call a bouquet of flowers a Tier 1 asset, does not deal with the shadow banking system in any meaningful way, and ignores the vast pit of putrescence that is the ratings agencies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Click for full size Additional Capital Requirements Phase In Schedule I&#8217;ve been looking at the Basel III international banking proposals, and I find them rather weak tea. The 10\u00a2 tour of the proposal is that they are requiring more capital, 4.5% tier 1 capital (basically capital that can be redeemed for cash in a market &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1004,964,1016,985],"tags":[],"class_list":["post-188499","post","type-post","status-publish","format-standard","hentry","category-finance","category-foreign-relations","category-international-commerce","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/188499"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=188499"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/188499\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=188499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=188499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=188499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}