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, including the unrealized gains currently excluded from capital: Name Leverage Ratio UR Gains filter LR w.o. filter bank of ny… Read More AOCI rule effects – nine banks affected.
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 of it evaporated – with consequences. Sad. In the spring of 2008, just days apart from the collapse of Bear… Read More JPM and Accumulated Other Comprehensive Income – a neat example of regulatory capture.