It would be funny if it were not so serious. The (so-called) Basel IA rules either may, or might not, be released for public comment on December 5. The FDIC is ready to initial them, but the other regulators probably will not be. This means the full Basel II rules will remain open for public comment throught the period when most other places on the planet have actually started implementing them (OK – only the standardised parts that are being ignored in the US, but you get the idea).
Surely this means the target implementation date will also be set back – banks the size of the 20 largest in the US, those implementing the accord, must have a target to shoot at and, at the moment they only have a fuzzy idea of it, and one that could change anyway. The lack of discussion between the regulators and the regulated, the late rule making, the uncertainly if they are even going to be allowed to reap the benefits of the improved risk sensitivity – what next?
If the US regulators just really thought about it, the full set of rules they should implement are here, with associated commentary here. It would be a great improvement.
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