So, wow, the Obama administration has reacted very quickly — perhaps too quickly — post the Massachusetts Senate election. After proposing a tax on bank liabilities, Obama is taking an even tougher line, adopting recommendations from Paul Volcker that banks be limited in their size and scope.
(Reader note: still working on
MUST READ — Strict framework leaves room for maneuver (Masters/Jenkins, FT) While this subject may seem a little dry, it’s the Basel Committee in Switzerland that will lead the way when it comes to how banks measure capital and how much they need to have. I’ll offer more detailed thoughts on this later today.