FDIC director backs Haldane on leverage ratio

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Basel III's reliance on risk-weighted assets is overly complicated and does not correlate closely to default risk, according to Jeremiah Norton, a director of the Federal Deposit Insurance Corporation (FDIC).

"While the Basel capital ratios based on risk-weighted assets do have a role in the capital framework for US banks, weaknesses inherent in risk weightings make it insufficient to place such heavy reliance on risk-weighted ratios in capital regulation," he said in remarks to the Florida

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