• Basel Faulty?
  • April 24, 2015
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • PIMCO recently published an article highlighting, in its view, some of the unintended consequences of Basel III capital rules. For instance, in PIMCO’s view, Basel III capital rules for derivatives trading do not currently reflect the actual risk associated with such trading (e.g., when a bank is acting as a conduit in a cleared derivative trade). According to the PIMCO article, these higher capital requirements for derivatives trading could have unintended and undesirable consequences vis-à-vis systemic risk.