It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Leading central bank governors said on Sunday they had agreed on a package of measures to strengthen on a “global” scale the supervision of the banking industry, raising “liquidity” requirements for all its member nations and pushing smaller institutions to develop “countercyclical” cash buffers to prevent future collapses.
The measures should “substantially reduce the probability and severity of economic and financial stress,” a statement released by the Basel-based Bank for International Settlements (BIS) said.
The approval sets in motion and enhances revised “Basel II” measures finalized in July, that require banks to bolster capital and remedy flaws exposed by the collapse in credit and financial markets last year.
“Basel II” is a framework for global capital monitoring and measurement. The U.S. has pushed for the framework to include stronger capital requirements for smaller institutions.
A U.S. Treasury official recently told Dow Jones that the framework will be fully implemented by 2011.
“The agreements reached today among 27 major countries of the world are essential as they set the new standards for banking regulation and supervision at the global level,” said European Central Bank chief Jean-Claude Trichet, who presided the meeting.
National financial supervisors were also urged to ensure that pay or compensation for commercial bankers was “properly aligned with long-term performance and prudent risk-taking,” added Nout Wellink, the chairman of the Basel Committee and Dutch central bank chief.
The laws of a country ought to be the standard of equity, and calculated to impress on the minds of the people the moral as well as the legal obligations of reciprocal justice. But tender laws, of any kind, operate to destroy morality, and to dissolve, by the pretense of law, what ought to be the principle of law to support, reciprocal justice between man and man — and the punishment of a member who should move for such a law ought to be death.