Basel heading for ‘rotten’ compromise, warns EU lawmaker
US commitment to FRTB is essential to persuade Europe to adopt a 72.5% output floor
European lawmakers are likely to give a hostile reception to a possible compromise deal at the Basel Committee on Banking Supervision, after regulators indicated they were close to agreeing to set a floor for internal capital models at 72.5% of the standardised approaches.
“The compromise that is emerging in the Basel Committee is a rotten one,” says Markus Ferber, vice-chair of the European Parliament’s economic and monetary affairs (Econ) committee, and a German member of the largest
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