Basel capital surcharges are too low – Fed paper

federal reserve
The US Federal Reserve

Global banks need to carry significantly higher capital than the Basel III standards currently require if they are to survive a serious crisis without taxpayer support, according to two economists at the Federal Reserve.

In a working paper published in February, Wayne Passmore and Alexander von Hafften, warn the surcharges for global systemically important banks (G-Sibs) "are too small based on the experience of the 2007–09 financial crisis".

They estimate regulators would need to raise capital

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