EU lawmaker wants a review of sovereign-debt rules for banks

12/2/2010 | ForexYard

Sharon Bowles, head of the European Parliament's economic-affairs committee, said that after the rescue of two eurozone countries, rules that allow banks to forgo setting aside capital for a sovereign-debt default need to be reconsidered. "We have got a big hole that we have to address," Bowles said. Holdings of sovereign debt with a high rating are zero-risk weighted under global capital rules.

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