Greenspan warns smaller banks' weakness

[Dover]

Greenspan warns smaller banks' weakness

http://feeds.bignewsnetwork.com/?sid=1ab6a21e58c485d9

Big News Network.com Saturday 12th March, 2005 (UPI)

U.S. Federal Reserve Chairman Alan Greenspan warned Friday smaller banks may be forced to close when new global rules are introduced.

In a satellite address to the Independent Community Bankers of America conference in San Antonio, Greenspan said regulators may have to adjust their capital rules to keep smaller banks afloat.

The United States must comply with banking regulations set by the Bank of International Settlements by January 2008.

more...

-------------

Bank for International Settlements, banking regulations website >

Bank for International Settlements

The Bank for International Settlements (BIS) is an international organization which fosters international monetary and financial cooperation and serves as a bank for central banks. It was originally formed by the Hague Agreements of 20 January, 1930, with the purpose of facilitating Germany’s payment of reparations following World War I. Today, the BIS is a focal point for research and cooperation in international banking regulation. It sponsors the Basel Committee.

In 2004, the Basel Committee finalized its new Basel II accord on bank regulation. US regulators perceive this as primarily relevant for internationally active banks. They intend to apply it to just ten of the largest US banks. Another ten will have the option to opt-in. Other US banks will remain subject to existing US regulations, including those adopted under the original Basel Accord.

http://www.riskglossary.com/articles/united_states_fina...


Related Internal Links


*Basel Committee A deliberative body that has played a leading role in standardizing bank regulations across jurisdictions.

*European financial regulation An overview.

*United States financial regulation An overview.

http://www.riskglossary.com/articles/bank_for_internati...

----------------

Independent Community Bankers of America:

http://www.ibaa.org /

[candy]

1. This is NOT the kind of news I want to hear---I use a small bank

The way it's been going there will be just one,huge worldwide bank and it gives me nighmares!

[cornermouse]

2. I strongly prefer small banks.

They're nicer, friendlier, pay more attention to the customer.

[trudyco]

3. Can somebody explain this to me in english... I know longer trust

Greenspan. Given how many megabanks bribed officials into the bankruptcy law I am looking into small banks to carry my Visa. Will this regulation have any impact on that? Also, we bank at a credit union - how will they be effected?

TIA for insights

[Robert Oak]

4. good god, brought to you by Citigroup & Goldman Sachs

this is intense, "the US must comply"...plus "let's wipe out
any independent banks"...

global monopoly superceding the EU and the US as a regulatory agency?

Thank you Dover, I had no idea, great post!