Credit Rating Agency

Beating Basel into American submission 

Federal Reserve Gov. Daniel Tarullo talked to a room full of lawyers Friday about implementing international bank regulation in America. And if that alone didn’t confuse me enough, he dropped this Basel III bombshell: “I expect that we will, among other things, suggest recalibration of certain deposit run-off and commitment draw-down rates, as well as modification of the buffer definition to place a greater focus on the liquidity characteristics of assets, as opposed to such things as the credit ratings associated with the assets.”