Basel Committee on Banking Supervision proposes closing regulatory loophole that facilitated banks to own the complex assets which have incurred huge losses
Jul 23rd, 2008 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
Global banking supervisors are seeking to close a regulatory loophole that facilitated banks around the world to own the complex assets that have resulted in huge losses during the current credit crisis. A proposal on Tuesday by the Basel Committee on Banking Supervision could overhaul the way banks calculate risk on their trading books and make it more costly to hold the kind of structured debt products that brought losses to banks such as UBS, Citigroup and Merrill Lynch.