Standard
Global bank capital and liquidity standards set by the Basel Committee after the 2008 crisis, implemented through national regulations.
Proposed Basel III changes would replace the mortgage servicing asset deduction with a flat 250% risk weight, American Banker reports. Servicing-heavy nonbank lenders could find a bank charter more attractive, but approval takes years and is not guaranteed.
Reality
Fed Vice Chair for Supervision Michelle Bowman says this year's eSLR changes freed as much as $5 trillion of headroom at primary-dealer holding companies. Dealers have used about $100 billion of it on Treasuries so far, and she concedes the reform's real test comes in a selloff.
Reality
Chase's coming report counts nearly $10 trillion of assets and roughly 12 million businesses in transition over the next decade, with 8% of owners advanced in succession planning. McKinsey counts six million transitions.
Reality
The minimum risk weight on certain senior securitization exposures would fall from 20% to 15% while corporate loans go from 100% to 95%, and Graham Steele says the private credit financing chain behind those numbers is already hard to map.
Reality
Citigroup and JPMorgan Chase are sponsoring home-equity securitizations filled partly with loans from nonbank channels. The capital rule that makes those deals attractive to a bank is not final. Nonbank sponsors are left competing on cost per deal.
Reality
Better Markets says Michelle Bowman met big-bank executives privately and coached them to file mild comments, and it wants the Basel III proposal withdrawn and Bowman recused. She said she directed no one.
Reality