Wall Street Banks Have Basel's Ear in Pushback on Market Risk
- Regulators said to plan to meet with finance firms next month
- Industry concerned rule will squeeze FX, interest-rate desks
This article is for subscribers only.
Wall Street is used to getting the opportunity to influence bank rules before they are unveiled. Now financial firms are getting the chance to argue that a key capital requirement should be softened even after it was supposed to be finished.
A global panel of regulators that includes the U.S. Federal Reserve and Bank of England will let the world’s largest banks provide additional feedback on a rule released in January that forces lenders to have sufficient capital to back bonds, derivatives and other securities they intend to trade, according to three people with knowledge of the matter. Scheduled to take effect in 2019, the directive seeks to ensure that banks can weather plunges in asset values.