Ron Pasch, an official at the U.S. Office of the Comptroller of the Currency, says regulation of financial institutions should be adjusted to ensure greater consistency in capital models. "What you hope -- when you ask banks to run the same trades through their models -- is that you get similar results, and that was really about trying to ensure we have consistency in the application of the Basel standards," said Pasch, a member of the standards-implementation group at the Basel Committee on Banking Supervision. "What we found, though, was that even when we have the same portfolio running through various models, there were a range of outcomes. And the range was significant."
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