Banks using CDS to cut capital requirements might face levy

03/25/2013 | Reuters · Financial Times (tiered subscription model)

The Basel Committee on Banking Supervision has proposed levying a charge on financial institutions that use credit default swaps to reduce capital requirements. The committee acknowledges that CDS can effectively manage risk but says banks should appropriately recognize the cost in their capital buffers. Read the Basel Committee documents. Read the Basel Committee news release.

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Reuters · Financial Times (tiered subscription model)

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