2010-09-09propublica.org

"According to the draft proposal, global banks would be required to hold high-quality capital reserves, known as Tier 1 capital, at 9 percent of their total assets. That’s more, for instance, than the 7.5 percent Tier 1 capital target that Citigroup had set for itself during the height of the financial crisis. (The Tier 1 capital ratio is a crucial measure of a banks’ strength or weakness. The more capital that’s set aside, the less likely it is to fail, or at least that’s the idea.) Felix Salmon at Reuters has called the numbers in the draft proposal “definitely at the top end of what anybody expected.”"


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