Another one (BOA) bites the AOCI dust.

Bloomberg News reports quite accurately on BOA’s AOCI perils. Bank of America’s AOCI loss more than doubled to $7.71 billion at the end of June from $3.49 billion on March 31, according to figures released on…

EBA presents a neat Q&A tool for Capital Questions

It features on the EBA home page, but obscured by the the words “Single Rulebook Q&A”, it is a neat tool nevertheless. Click here for access.

Europe’s painful phase-out of old-style capital instruments

Matthew Attwood in Financial News reports on the difficulties that European banks face when replacing pre-crises capital instruments by Basel III compliant instruments. This was a small disaster waiting to happen, as Bazel III rules made…

More AOCI bashing

Banks again blame the accounts for their own abysmal performance. More worryingly is the way the press reports on this. See Business Report writing it up: Wells Fargo and JPMorgan Chase, the most profitable US…

Additional tweaks for US Basel III implementation

From Bank Credit News, Alexandra Villarreal reports: Banking regulators, including the OCC, Federal Reserve and FDIC, approved a revised final rule on regulatory capital designed to bolster the U.S. financial system and reduce the regulatory…

AOCI rule effects – nine banks affected.

I just checked the Basel III AOCI rule – discussed by Reuters last week – using real data from bank holding companies. This is what inclusion would amount to, using 12/31/2012 data from US bank holdings,…

JPM and Accumulated Other Comprehensive Income – a neat example of regulatory capture.

It should not come as a surprise that the discussion on the in/exclusion of Accumulated Other Comprehensive Income from Regulatory Capital continues. JPM highlighted one reason for keeping the discussion on AOCI going, as most…

Berenberg on European Banks

Berenberg presented an interesting 145 pager on Capital of European Banks. It should be downloadable from the FT site, click here.

Basel III, US, and AOCI

An interesting aside of the US Basel III adoption is the relief of the inclusion of Accumulated Other Comprehensive Income (AOCI). Its inclusion in Common Equity Tier 1 regulatory capital (CET1) is only mandatory under…

US adopts Basel III

The US adoption of Basel III attracted some discussion on the leverage ratio, see Bloomberg, fuelled by a comment from Daniel Tarullo: “The Basel III leverage ratio seems to have been set too low to…