Mario Draghi, governor of the Banca D’Italia and chairman of the Financial Stability Board, has criticized European and U.S. banks for trying to weaken new rules adopted by the Basel Committee on Banking Supervision, reports GFS News.
The central bank of the U.S. has voiced its support for moderate capital rules for leading global banks set forth by European regulators in an effort aimed at avoiding future bailouts, according to Bloomberg.
U.S. Department of Treasury Secretary Timothy Geithner and Michel Barnier, the European Union’s commissioner for internal markets and services, jointly announced their commitment to stricter capital requirements adopted by the Basel Committee on Banking Supervision, reports Reuters.
Nout Wellink, chairman of the Basel Committee on Banking Supervision, said the new capital requirements adopted by his committee do not fully address the problems of banks deemed too big to fail, reports Dow Jones Newswires.
The implementation deadline for capital requirements adopted by the Basel Committee on Banking Supervision is too long, and may lack relevance by the time that date arrives, according to Chris Brummer, a senior fellow at the Milken Institute, reports SmartBlog.