‘Senators Try to Gum up Dodd Frank,’ The Street

According to Rodriguez Valladares, “European and Japanese regulators have long advocated for different assets to be used as capital. Americans have said that retained earnings and common stock were the best forms of capital, because they have real ability to absorb losses. U.S. Regulators finally won this battle with Basel III.”

“If the U.S. were to require higher capital requirements for its banks, I guarantee that China and other countries will not do the same,” says Rodriguez Valladares. “They will certainly have more capital to play with.”

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