Reply #20: Top Banks Face $100 Billion Basel Shortfall [View All]

[Demeter]

http://abcnews.go.com/Business/wireStory?id=12208182

The new Basel III banking rules will leave the biggest U.S. banks short of between $100 billion and $150 billion in equity capital, with 90 per cent of the shortfall concentrated in the top six banks, the Financial Times said, citing research from Barclays Capital....


"These shortfalls are entirely manageable ... The more difficult question is what affect the new rules will have on the cost and availability of credit and bank profitability," the FT quoted Tom McGuire, head of the Capital Advisory Group at BarCap, as saying.

McGuire estimates that U.S. banks can cut their equity needs by $10 billion with each $125 billion reduction in risk-weighted assets, the FT said....


OR THE TBTF COULD DO THE USUAL, AND IGNORE BASEL, JUST LIKE THEY IGNORED EVERY OTHER CONSTRAINT ON BUSINESS...