Basel and Dodd-Frank create arbitrage potential, say analysts

usa flag
Analysts: US banks may profit from regulatory glitch

A requirement in the Dodd-Frank Act to remove all references to credit ratings from the US regulatory framework could lead to regulatory arbitrage, and is already being exploited by banks, claim analysts at JP Morgan Cazenove.

In a note published on July 1, the analysts predict the requirement to remove credit ratings will delay the implementation of new Basel trading book rules in the US – dubbed Basel 2.5. With the rules due to be implemented in Europe from December 31, they are concerned abou

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: