Big Banks Should Up Capital Reserves, Global Watchdog Says

Law360, New York (November 1, 2012, 9:29 PM EDT) -- The Financial Stability Board said in a report Thursday that global banks should increase their capital reserves to guard against financial calamities like those caused by rogue traders and systemic risk management failures at major institutions like UBS AG and JPMorgan Chase Bank NA. 

In a report addressing the global risks associated with too-big-to-fail banks, the international financial regulatory body said it found that some have not used the right models to assess their capital risk. Those institutions must increase capital as a hedge against high-cost,...
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