EU takes aim at zero-risk weighting of sovereign debt

01/24/2012 | Reuters

EU lawmakers are scrutinising the notion that sovereign debt carries a zero-risk weighting. Some officials are calling on banks to hold additional capital to cover possible losses on risky government bonds. Germany, however, warned that additional regulatory burdens shouldn't be heaped on banks. "We do not support any sudden change to the zero-risk weighting of sovereign bonds," said German Finance Minister Wolfgang Schaeuble.

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