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Since the guarantee is so valuable and pervasive, these giant intermediaries face little market discipline and have a perverse incentive to expand their scope, scale, risk exposure, leverage and financial interconnectedness.
Rather, the amendment considers a variety of objective standards to determine if financial firms pose a threat to our financial stability, including the scope, scale, exposure, leverage, interconnectedness of financial activities, as well as size of the financial company.
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The regulator would pass judgment on the capital levels, trading exposure and leverage of Wall Street's most sophisticated institutions.
A succession of American bank regulators each cautioned against the sophisticated methods of Basel 2 unless they could also preserve a cruder measure of banks' lending exposure, the leverage ratio.
Instead, at a minimum, coordinated approaches of in-depth exposure characterization nested within larger cookstove studies will leverage research resources.
A bundle of policies such as, recruiting more students from rural areas, setting up special admission/curriculum programmes which allow early rural exposure, and leveraging financial incentives should be promoted.
Unless they are lucky enough to have a rich uncle or a trust fund, the only way to increase their exposure is through leverage.
(Because nothing says, "My firm collapsed because of excessive leverage, exposure to subprime mortgages, shady accounting practices and/or mismanaged bets on European sovereign debt" like corrugated cardboard vessels filled with office supplies and broken dreams).
The brokerage believes that the company is risky, given its leverage exposure to nitrogen.
Barclays said it would aim to cut at least another 63 billion pounds to get the balance sheet below 1.3 trillion pounds, based on the UK regulator's calculation of leverage exposure.
The Hensarling blueprint would primarily allow banks to choose between complying with Dodd-Frank or meeting tougher capital requirements - primarily to maintain a ratio of tangible equity to leverage exposure of 10percentt.
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CEO of Professional Science Editing for Scientists @ prosciediting.com