The trade body for banks will tell the Financial Services Authority today that proposed changes to capital and liquidity requirements do not “strike the right balance”.
The British Bankers’ Association says in a letter to the regulator there must be an urgent assessment of the costs of complying with the new rules.
In the letter to Hector Sants, the FSA’s chief executive, Angela Knight, head of the BBA, says forcing banks to hold more capital, and a higher proportion of funding in liquid form, will constrain balance sheets as banks are being urged to lend more to cash-strapped companies and individuals.
This, of course, fits with the theme of most of today's blogs: the City simply refuses to believe they must change as a result of what happened last year.
They want Humpty Dumpty back on the wall again.
He's bust. He can't go back. Change has to happen. Bankers have to be reigned in. Glass Steagall is needed.
We will not go forward whilst we remain committed to the old model of Anglo Saxon capitalism.
What worries me is how many civil servants in the Treasury still believe in it.