OTC MARKET NEWS Powered By Quantifi

Germany Threatens to Abandon Basel Talks If Demands Not Met 

November 15, 2016

Alexander Weber, Bloomberg

Germany’s Bundesbank delivered an ultimatum to other major banking powers including the U.S. that it will walk away from talks on revamping global capital rules unless its key demands are met.

Andreas Dombret, a member of the Bundesbank Executive Board, said on Tuesday that Germany won’t accept a deal “at any price.” He laid out a series of demands, including two “essential areas of action” for talks later this month in the Basel Committee on Banking Supervision, the international standard-setter. Both will probably be met with skepticism in Washington.

With the administration of President-elect Donald Trump soon to take power in the U.S., propelled into office in part by increasing suspicion of globalization and regulation, Dombret said he hopes work in the Basel Committee “will continue to be based on mutual trust.” But the Bundesbank “is not prepared to reach an agreement at any price,” he said in a speech in Frankfurt.

Basel Committee members, which include the U.S. Federal Reserve and Japan’s Financial Services Agency as well as the Bundesbank, are racing to meet a year-end deadline to put the final touches on the international capital standards known as Basel III. Thomas Hoenig, vice chairman of the Federal Deposit Insurance Corp., another committee member, said the U.S. shouldn’t budge from stronger standards under European pressure. Read more

Comments are closed on this post.


Submit your email to receive our newsletter