US regulators urged to give nothing away to foreigners at next week’s Basel Committee meeting

WASHINGTON, September 28 (Global Risk Regulator) – US banking supervisors were urged today not to concede anything to their foreign counterparts at a key meeting next week on the controversial Basel II bank safety rules.

And Representative Spencer Bachus, chairman of the financial institutions subcommittee of the House Committee on Financial Services, said he’s disturbed that the US regulators are still committed to a January, 2008 start for Basel II in the US, despite all the uncertainties arising from the stalled US implementation plans.

Bachus said the subcommittee expects to grill top US supervisors on their return from the October 3 and 4 regular quarterly meeting in Basel, Switzerland of the Basel Committee on Banking Supervision, the architect of the complex, risk-focused Basel II bank capital adequacy rules.

The US supervisors are expected tell their fellow Basel Committee regulators from Canada, Europe and Japan the outcome so far of their further study of some worrying results of a test of Basel II in the US that caused them to delay issuing of their plans for implementing the rules in the US. The test indicated significant drops in the amount of capital banks would have to hold under Basel II to absorb surprise losses from the risks they face.

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