Wall Street Urges U.S. Regulatory Agency to Further Loosen Basel Accord

BlockBeats News, June 18th, according to the Financial Times, Wall Street financial institutions are pressing US regulators, warning that the proposed global bank capital requirements under the "Basel Accord" could weaken liquidity in the US Treasury market and urging authorities to reconsider the proposal to control market risk.

Concerns about potential instability in the $29 trillion US Treasury market have become the latest lobbying focus for the US banking industry as Washington pushes to implement global regulatory rules. These rules stem from the international bank risk framework developed after the 2008 financial crisis. Under pressure from the banking industry, the Fed and other regulatory agencies have significantly watered down the original proposal, with the related rules expected to no longer dramatically increase overall capital requirements for US banks, and may even reduce capital levels.

However, Wall Street firms are still pushing for further adjustments. According to the contents of a letter, as estimated by eight large US banks, the latest proposal would result in a 30% to 89% increase in capital requirements for the sector's banking operations.