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JUST getting the proposed capital rule out the door seems to have been tough, judging from one regulator's public comments.
In Canada, the well-publicized conservative capital rule not only restrained Canadian banks, but it also served as an immutable reminder to regulators and kept them from falling under the sway of bubble thinking.
Mr. Pawlenty, the former Minnesota governor and candidate for the Republican presidential nomination, trotted out that time-honored claim that is used to undercut so many regulations — that the higher capital rule was a bad idea because it would put American banks at a competitive disadvantage to foreign institutions that needn't abide by it.
I agree with him that regulators with such an outlook will not succeed in achieving financial stability.But let's give a chance to a macro-prudential regulator to provide belts and braces to the contingent capital rule and the winding down plan.
Ratings embodied in regulation, they protested, would leave the agencies open to accusations that they are influenced by bank supervisors.S&P, Moody's and their smaller rival, Fitch, owe their special status to the SEC's decision in 1934 to introduce a net capital rule for broker dealers operating in the capital markets.
While the ICB made it clear that the current crisis in the eurozone should delay the reforms, it also set a deadline of 2019 for implementation of the changes to coincide with the international capital rule changes being introduced by regulators in Basel, Switzerland.
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Bank regulators are working on capital rules.
They haven't even proposed new bank capital rules.
The S.E.C. was monitoring Knight's compliance with capital rules.
He said international regulators were still consulting on capital rules.
JPMorgan could not redeem the security early — unless tax laws or bank capital rules changed.
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