German finance minister calls for Basel III
Daily news headlines
FRANKFURT – German finance minister Peer Steinbrück is proposing more risk regulation in the wake of the subprime fallout.
The comments appear in the German magazine Spiegel and call for debate on more regulation to increase the capital reserves that banks must hold to offset their higher risk products. The liquidity crisis that has arisen from the US subprime mortgage drama recently has, according to Steinbrück, revealed the inadequacy of the international Basel II risk regulations – making a new round of ‘Basel III’ regulation necessary.
The finance minister has made a number of controversial and contradictory comments in recent months. French president Nicolas Sarkozy recently asked German chancellor Angela Merkel to force Steinbrück to apologise for contradicting Sarkozy at a meeting on the Central European Bank. On September 4, Steinbrück told reporters that the German economy had “sufficient reserves to withstand the current tensions… Those I listen to don't see a significant clouding of the economy, the fundamental basis is still intact”.
Given Steinbrück’s past emphasis on a voluntary code of conduct, his latest comments appear to be a complete U-turn in regulatory policy.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Basel Committee
Derivatives
SEC’s Gensler takes aim at Bloomberg’s BSBY index
Credit sensitive SOFR alternative has “many of the same flaws as Libor”, regulator says
Receive this by email
Most read on Risk.net
- The Libor replacement stakes: runners and riders
- SEC’s Gensler takes aim at Bloomberg’s BSBY index
- People moves: five leave JP Morgan, MS names co-presidents, and more
- Asia moves: Deutsche appoints Asia-Pacific treasurer, Citi boosts Australian sales team, and more
- Early deaths could kill defined benefit pension shortfalls