Analysis: Basel III will hit investment-banking units hard

02/21/2011 | Economist (free content), The

JPMorgan Chase, Barclays and Credit Suisse recently explained how their investment-banking divisions plan to earn a sufficient return on equity. For now, the plans seem workable, but the investment-banking units will soon face the tougher Basel III requirements. The required capital ratio will increase and the amount of risk-weighted assets to which such charges are applied will rise significantly, according to The Economist.

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Economist (free content), The

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