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Breakingviews: New Basel metrics reprieve short-lived

Monday, January 13, 2014 - 04:08

Jan. 13 - Basel's softening of equity-to-assets metrics will help European banks. The gap with U.S. regulation is narrowing and eventually a common global measure could be raised more easily, says Breakingviews

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Cover stories are way out following on breaking news this morning back. Leverage and the reprieve that we got over the weekend for the banks to be short lived. And Amex said to Barney US listed rival Foster we don't know one point nine billion pound. Strategic shift it's usually the US engineers -- UK engineers are some nights not change Chris. -- come tonight in the second this banking reprieve is that it. But you leverage ratio part of the Basel rules they gonna give them more time will they get they gonna give the economy is more time to recover it seems like. Well it's a pragmatic. Retreat. By powerful. Or get it in the security but basically banks will be allowed skewed. Next -- certain positions and calculates in this key. Leverage ratio which measures. That equity. Relative to that article by half that's been through my half of -- -- would come down a -- and so that. That -- wouldn't be being quite so high. This comes off to some pretty. Sustained lobbying by the banks. So it and it and it looks like. Puzzles given ground put an end to any parent was going to pick fix them fixing cooperating with. A lot of -- is gonna be quite pleased with however. In it would be wrong to be sort of the clintons campaign -- of these tunes. Trading desk when they get good news. Because. That's essentially create then that reduces the gap between the US. And European missions leverage -- -- Mean if it would have to be easier ones who arrived from the current and agreed labels on the leverage it can be easy especially turn it the other way say. So that's that's the flip side what what we've got out a global stand and make it he's just a flippant and and and raise it. Yet if subordinated leverage these very very hard to imagine one of the things which -- actually. Right it had this debate caring and and you sustained uncertainty. -- bull. If banks whole strategy actually towards that violence it's. If all kind of a global consensus mean. That'd be you characterize the saying well we're not trying to. Get in the medieval times to -- yet because we don't quite know whether global. Consensus going to be so it it's more civilian this year and has -- -- kind of narrowing the differential between various measures must Wear it and thought. Okay target and then this am this I start to panic buying. Plus that we. I sort of it's not usually the other way around as the US from the UK that's right let's I want. The UK and UK engineering sector -- Very fertile territory for. This is a car -- -- interest in in intensive than a few months the current. He's got I'm right which has undergone in a pretty decent time around them. Smith returns that's me right now is buying something which and is not muscles more than it is itself with -- Race that is he's musician casts its. It's assuming she has as well I think that's pretty average to steal. Financially we're pretty okay within its boldest possible sentence is the premium is is this pretty skinny about Clinton sends us through bigger than that when you factor in. Previously speculation and in force to reassess. Who was noticing is that that this is quite a strategic -- both of them parishioners -- just UK. Engineering. But in America is also shifting his business suit is taking it more downstream more into more thinking about it. And achieve. -- of him refining and distribution in the likes it. It's -- accountable so but so -- often and so it looks pretty solid. Can I get Christmas thanks Heidi can -- those stories of course on the breaking news web site. For more generous heading inside what's our US bring you -- every day 1230s and 1730 GMT IMAX folks is what is.

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Breakingviews: New Basel metrics reprieve short-lived

Monday, January 13, 2014 - 04:08