close
close

According to reports, the USA plans to lower bank rules to prevent the 2008 style accident | Bank business

According to reports, US wax dogs are planning to reduce capital rules for banks to prevent another accident in the 2008 style, since Donald Trump's deregulation drive has opened the door to the greatest rollback of protection after the crisis for more than a decade.

The move follows strong lobbying through the banking industry. Lending lenders such as JP Morgan and Goldman Sachs have long complained that competition and lending by the incriminating rules for the assets they have to hold were hindered compared to their liabilities.

The supervisory authorities are expected to submit the suggestions this summer to reduce the supplementary ratio of levers in which large banks, according to Financial Times, in which sources were quoted by name, have to prevent high -quality capital against risky assets, including loans and derivatives.

The rules came into force after the 2008 financial crisis to shock and avoid the banking system that Ripple effects could lead to another global melting of economic melt. The crisis forced the governments to spend billions of dollars in order to spend large lenders that take too much risk.

The changes to the bank capital rules were expected, with Trump promised a campfire of the regulation during his second term, with plans for covering 10 regulations for each new one.

Some critics warn that it is the wrong time to reduce protection because the growing uncertainty about political overhaul and market volatility have gained growing uncertainties, but the banks seem to have gained the ear of political decision -makers. Lobbyists have long argued that the rules are punishing them to punish relatively low-risk assets, including US debts, which are called government bonds, and hinder their ability to provide more loans.

In some corners of the city of London, the prospects for a deregulation drive have triggered concerns that Great Britain could not become competitive due to stricter regulation compared to US colleagues.

The Chancellor, Rachel Reeves, said in November that the regulations had stipulated after the global financial crisis had “too far” and ordered financial wax dogs to promote and regulate the willingness to take risks that may contain the growth and competitiveness of city companies.

Months later, the Bank of England announced that it will continue to be delayed in Great Britain – known as Basel 3.1 – as it dropped the effects of Trump's return to the White House.

Skip the past newsletter -promotion

The Financial Conduct Authority examines how it could facilitate the mortgage rules that have been tightened since the financial crisis in order to increase the ownership of the own home under pressure from the Labor government.

Leave a Comment