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"The crisis exposed deficiencies in the financial sector's business model that had prevailed for several decades," the settlements bank said.
Lending by banks to their counterparts in the troubled countries also fell sharply, the settlements bank said.
The settlements bank said credit-default swaps retained their appeal as a way to hedge debt holdings.
Average volume on foreign exchange markets was $4 trillion a day in April 2010, or 20 percent higher than in 2007, the settlements bank said.
During the period covered by the settlements bank figures, the central bank spent €59 billion, or $78 billion, buying European government bonds on open markets, according to the central bank.
Those negotiations over what is being called Basel III are conducted by the Basel Committee on Banking Supervision, a body of regulators that meets at the B.I.S. headquarters, but is separate from the settlements bank.
Similar(53)
In fact, despite numerous no-fault settlements, banks continue to fabricate documents and kick people out of their homes based on false mortgage evidence.
After the settlement, bank executives and regulators appeared before a parliamentary committee to discuss the case.
JPMorgan Chase alone made up 11% of MasterCard revenues in 2005 and in the first quarter of 2006, in addition to being its settlement bank and a major lender.
Since the Barclays settlement, banks have been reassessing their defense strategies and reaching out to authorities.
Under the settlement, banks get more credit for forgiving mortgages that they own ("portfolio loans") than those they sold to Wall Street and currently only service.
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