Leverage ratio rules don't go far enough, lawmakers contend

07/12/2013 | AmericanBanker.com (free registration)

Sens. Sherrod Brown, D-Ohio, and David Vitter, R-La., expressed concerns Thursday at a Senate banking committee hearing on systemic risk that big banks will use "optimization strategies" to comply with new capital rules and that the levels are still not high enough. "I'm particularly concerned that banks can use risk weights and internal models to game their capital rules," Brown said. Regulators defended the rules and said more systemic-risk provisions could be forthcoming.

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