US banks face $60bn capital shortfall

[alp227]

Source: Financial Times

The 19 largest US banks are at least $50bn short of meeting new capital requirements under the Basel III accords, according to rules proposed by the Federal Reserve.

The biggest among them would probably need billions of dollars more by the 2019 deadline to comply fully with the rules. Smaller US lenders are about $10bn short of the requirements, the Fed said on Thursday.

Fed officials said that most banks should be able to reach the new levels by retaining earnings during the next few years rather than by raising capital in the market.

The Fed’s proposals, which will be phased in from next year, are part of a larger package implementing the Basel III accords in the US. Banking regulators want lenders to hold more high-quality capital, and they are taking a more stringent approach when judging the relative riskiness of banks’ assets.

Read more: http://liveweb.archive.org/http://www.ft.com/cms/s/0/fcb78554-b0f1-11e1-a2a6-00144feabdc0.html

[Bozita]

1. Too big to fail? ... My ass!

Wanna talk about welfare queens?

[bhikkhu]

2. Good

That makes them a little more stable still, though the bank reform bill raised the reserve requirements as well. While some of its provisions have been delayed because of technical issues and obstruction, this is an easy one that goes toward the same goals.

[Scootaloo]

3. Reinstate Glass-Steagal

Without it, every bank becomes an investment bank, and that puts everyone's money at risk in the Wall Street Casino.

[sarcasmo]

7. +1

[PossumSqueezins]

4. We should just trust them...

And we should give them all of our Social Security money and let them invest it. I'm sure they will do the right thing. lol

[Po_d Mainiac]

5. By 2019?

[dixiegrrrrl]

6. Bull pucky.

They took all our money when Paulson and Timmy gave it to them,
they get free money from the Fed all the time
They have reported continuing profits every year ( the CEOs get bonuses based on the profits)
They have to pay NO income tax on earnings
and they are hiding all their money offshore.

This sounds like a set up to justify another raid on our money.

[Odin2005]

8. Let them fail.

I'm sick of propping up these SOBs.