United States:
Basel III Framework: US/EU Comparison
24 September 2013
by
Barnabas W.B. Reynolds
,
Thomas Donegan
,
Bradley Sabel
,
Azad Ali
,
Hervé Letréguilly
,
James Campbell
,
Tobia Croff
,
Winfried Carli
,
Kolja Stehl
,
Colin Law
,
David Portilla
,
Donald Lamson
,
Ellerina Teo
and
Sylvia Favretto
Shearman & Sterling LLP
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The US and EU rules implementing Basel III follow many aspects
of Basel III closely, but there are major differences in approach
in several key areas. Financial institutions have been engaged in a
"race to the top" to show strong capital ratios but rules
on leverage appear to be the most challenging and may require
significant business restructuring. The interplay between the US
and EU implementation of Basel III and the gradual "phase
in" of certain rules, particularly on liquidity and leverage,
will have a profound impact on the relative competitiveness of
relevant US and EU financial institutions. This client publication,
and the accompanying US/EU comparison and summary table, highlight
points of international consistency and divergence.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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