Wed Dec 5, 2012, 09:34 AM
marmar (69,342 posts)
Global banksters feel like they're under siege ..............
The orchestra is warming up ...........
(Bloomberg) Global banking, a model promoted for more than 30 years by financial conglomerates cobbled together through cross-border mergers, is colliding with the post-crisis reality of stricter national regulation.
Daniel K. Tarullo, the Federal Reserve governor responsible for bank supervision, announced plans last week to impose the same capital and liquidity requirements on the U.S. operations of foreign lenders as on domestic companies. The U.K. and Switzerland also have proposed banking and capital rules designed to protect their national interests.
Regulators want to curtail risks exposed after global banks such as New York-based Citigroup Inc. (C), Edinburgh-based Royal Bank of Scotland Group Plc and Zurich-based UBS AG (UBSN) took bailouts in the biggest financial crisis since the Great Depression. Forcing lenders to dedicate capital and liquidity to multiple local subsidiaries, rather than a single parent, may undermine the business logic of a multinational structure.
“Being big and spread out all over the world isn’t what it used to be,” said Mayra Rodriguez Valladares, managing principal at New York-based MRV Associates, which trains bank examiners and executives at financial firms. “You’ll see global banks jettison divisions abroad and at home.” ......................(more)
The complete piece is at: http://www.bloomberg.com/news/2012-12-05/global-banking-under-siege-as-nations-tighten-local-rules.html
4 replies, 735 views
Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Global banksters feel like they're under siege .............. (Original post)
|Egalitarian Thug||Dec 2012||#4|
|banned from Kos||Dec 2012||#2|
Response to sadbear (Reply #1)
Wed Dec 5, 2012, 09:54 AM
Egalitarian Thug (12,448 posts)
4. That was my thought as well. Sadly, the U.S. is the only player with the capacity to
fix the problems but we don't want the problems fixed because our owners went to so much trouble creating them and make so much money from them.
Response to marmar (Original post)
Wed Dec 5, 2012, 09:44 AM
banned from Kos (4,017 posts)
2. The Fed gets it now - no more Greenspan Randism there.
Daniel K. Tarullo, the Federal Reserve governor responsible for bank supervision, announced plans last week to impose the same capital and liquidity requirements on the U.S. operations of foreign lenders as on domestic companies.