US investment banks create myriad problems for Basel II

Not only will their overseas subsidiaries receive harsh treatment at the hands of Basel II, but their home regulator, the SEC, says it is not sure when it will release guidance on its own plans to implement Basel II within the US, leaving firms in the dark.European regulators, such as the UK’s FSA, have already made it very clear they will consider US investment banks, such as Morgan Stanley, Goldman Sachs and Merrill Lynch, as falling under the Basel II umbrella. Says an FSA official, "Any