Banks slam zombie floors in Basel endgame proposal
US regulators double down on capital floors despite clampdown on internal models
Bankers have been left baffled by a proposal from US prudential regulators that would require them to calculate two separate capital floors that are unlikely to ever bite.
The Federal Reserve, Federal Deposit Insurance Corporation and the Comptroller of the Currency issued a sweeping notice of proposed rulemaking on July 27 to implement the final round of internationally agreed bank capital requirements, dubbed the Basel III endgame. The proposal would retain an existing capital floor
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