Basel III

On June 7, 2012, The US Federal Reserve signed off on proposed new regulations to bring US banks in line with the Basel III global standards, aimed at giving banks more crisis-resistant footings. The US rules will give bank holding companies and savings and loans companies with at least $500 million in assets until 2019 to meet the new capital rules.

A. What are the potential challenges in Implementing Basle III standards for American Financial Institutions by 2019?

B. How is Basle III different from Basle II and what additional requirements it imposes on individual institutions?

C. What are its implications for overall global financial stability?

D. What are the major arguments of US Institutions against its implementation?