Resources for Basel II Capital Accord (Basel II)

Basel delay helping US banks now-FDIC's Bair

www.guardian.co.uk

Big U.S. banks are in a better position to weather the subprime mortgage meltdown with reserves bolstered by a delay in implementing new international capital standards, Federal Deposit Insurance Corp Chairman Sheila Bair said on Friday.
"The banks needed excess capital and they're using it now and that's what it's there for, to be a shock absorber when you get into situations like this with unexpected losses," Bair told Reuters in an interview.
The Basel II accord is aimed at better matching capital reserves to reflect market, operational and credit risks but was widely expected to allow banks to lower capital levels.
So-called U.S. "core" banks, such as Citigroup Inc., Bank of America Corp , JPMorgan Chase & Co and Wachovia Corp, with more than $250 billion in total assets or $10 billion in assets overseas, will begin modeling the Basel II rules in April.

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