BIS Tells Banks To Recognize Losses, Wean Gov't Support

Law360, New York (June 25, 2012, 7:21 PM EDT) -- Policymakers looking to boost the global economy must force financial institutions to face facts about their weak balance sheets in the short-term and adjust their business models in the long-term to minimize use of government guarantees, the Bank for International Settlements said Sunday.

The advice was contained in the BIS' sweeping annual report, which paints a bleak portrait of a financial sector yet to rebound from the 2008 financial crisis. In a section titled “Post-Crisis Evolution of the Banking Sector,” the BIS calls on government leaders...
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