FSB works on how to cope with "too big to fail" banks:

Mario Draghi, chairman of the Financial Stability Board, sent a letter to leaders of the Group of 20 nations saying the global regulator has agreed on a framework for dealing with banks deemed "too big to fail." According to the letter, the board has agreed to "a policy framework, work processes and timelines for addressing the systemic and moral hazard risks associated with [systemically important financial institutions]." The letter states that major banks' ability to absorb losses should go beyond the Basel III requirements on capital and liquidity.

View Full Article in:

Reuters · Telegraph (London) (tiered subscription model), The · Bloomberg

Published in Brief: