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G-20 Endorses New Reserve Rules for Banks

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G-20 leaders in Seoul endorsed the Basel III regulations, which raise the amount of risk free capital banks have to hold to 7% of assets from as low as 2% now. The rules are to be phased in between 2013-2018, a long period, by which time there could be another crisis.The rules for banks that are "too big to fail" will be written more stringently by the Financial Stability Board. The FSB will need another year to write these rules. Mario Draghi of the Bank of Italy, heads the FSB. He is asking for more resources for the FSB to do its work.

The Oct. 2010 G-20 meeting in S. Korea and the trade and currency compromise.

10/22/2010

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Banks Get New Restraints

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After Basel, the Banks Are Not Safer

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