[221] Middleton and Randazzo on bank capital and bank regulation

• published: 22 Oct 2014
• views: 223

At the G20 summit this November, the Federal Reserve will announce new and broader capital requirements for US banks. The market’s bet is that the Fed will require loss-absorbing capital -- which includes equity and debt --- to be somewhere between 20-25% of risk-weighted assets. Erin weighs in. Then, Erin is joined by Anthony Randazzo, director of economic research at the Reason Foundation. According to new regulations (to be decided soon), too-big-to-fail US banks might have to issue at least $260 billion of senior unsecured debt as a buffer between equity capital and deposits. Anthony gives us his take on this and whether or not it’s warranted. After the break, Erin talks to Reggie Middleton – CEO of Veritaseum and inventor of Ultracoin – to talk about banks and bank shares. Reggie also tells us how he thinks banks will respond to Bitcoin and what impact the Internet will have on financial services. And in The Big Deal, Erin and Edward Harrison discuss European stress tests. Eleven firms will fail the exercise and need more capital as credit in Europe contracts. Edward and Erin discuss the implications. Take a look! Check us out on Facebook: http://www.facebook.com/BoomBustRT https://www.facebook.com/harrison.writedowns https://www.facebook.com/erinade2020 Follow us @ http://twitter.com/ErinAde http://twitter.com/edwardnh