Regulators tighten bank capital rules

The Globe and Mail (also appeared on CTV News)

September 12, 2010

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Global authorities have settled on powerful new rules for the world’s banks, agreeing to significantly heavier reserves that would impede the impulse to seek profit through excessive risk taking.

Global authorities have settled on their punishment for banks’ role in the financial crisis: a future encumbered by the burden of significantly heavier reserves that will impede the impulse to seek profit through excessive risk taking.

Senior regulators from 27 countries agreed on Sunday at a meeting in Basel, Switzerland, that lenders should be forced to retain common equity equal to at least 4.5 per cent of their assets, compared with …

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