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Fed governor urges calm over Basel II

LONDON – Federal Reserve governor Susan Schmidt Bies tried to calm European nervousness over the US's approach to Basel II implementation in a mid-October speech at a British Bankers Association conference.

In her speech, Schmidt Bies emphasised the fact that she believes the US will eventually implement Basel II by arguing that a failure to implement Basel II would be unthinkable. "Supervisors should continue to support approaches that minimise the negative consequences of risk-taking by financial institutions, particularly those institutions that could contribute to financial instability," she said

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