Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.

So how are the Basel III negotiations going? You know, the ones that would tighten bank capital requirements, reduce leverage, and, in the words of the Wall Street Journal, “have greater implications for banks and the global economy than the U.S. regulatory changes emerging in Washington”? Here’s the latest:

International regulators are moving toward an agreement that would require banks to raise vast sums of new funds to cushion against future losses, but in a concession to the industry and some governments, the rules are likely to take effect later than expected, according to people familiar with the matter.

….France, Germany and Japan have pushed for as much as a 10-year window before the rules go fully into effect, and U.S. and U.K. officials recently have indicated that they would support a gradual time frame, according to people familiar with the matter. “I’m perfectly comfortable with us negotiating reasonable transition period to help make people more comfortable that they can live with those new standards,” U.S. Treasury Secretary Timothy Geithner said Wednesday afternoon in Washington, before leaving for the G-20 meeting.

Hell, even I don’t have any problem with this. And it sounds like no one else does either. If the new requirements are stiff enough to actually make a difference, we’d be nuts to demand that banks adopt them immediately in an environment where growth is already slow, lending is anemic, and raising risk capital is difficult. The real question isn’t so much the timeframe for adopting the new rules, it’s whether the rules are any good. Here’s what we know about that:

Other crucial details remain unresolved, including disputes over the types of funds banks will be allowed to count toward toughened capital and liquidity requirements. Bank executives, sometimes with backing from their governments, have been waging an intense lobbying campaign to water down parts of the so-called Basel proposals, known for the Swiss city in which the accords traditionally have been negotiated.

This is the real battleground, but the Journal doesn’t have anything to tell us about that. The best we have right now, via Felix Salmon, is an article from Global Risk Regulator a few days ago that suggests the Basel negotiators are likely to stick to their guns and issue tough new regulations in the very near future. Keep your fingers crossed.

MOTHER JONES NEEDS YOUR HELP

We have about a $170,000 funding gap and less than a week to go in our hugely important First $500,000 fundraising campaign that ends Saturday. We urgently need your help, and a lot of help, so we can pay for the one-of-a-kind journalism you get from us.

Learn more in “Less Dreading, More Doing,” where we lay out this wild moment and how we can keep charging hard for you. And please help if you can: $5, $50, or $500—every gift from every person truly matters right now.

payment methods

MOTHER JONES NEEDS YOUR HELP

We have about a $170,000 funding gap and less than a week to go in our hugely important First $500,000 fundraising campaign that ends Saturday. We urgently need your help, and a lot of help, so we can pay for the one-of-a-kind journalism you get from us.

Learn more in “Less Dreading, More Doing,” where we lay out this wild moment and how we can keep charging hard for you. And please help if you can: $5, $50, or $500—every gift from every person truly matters right now.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate