HSBC warns new regulations could break up banks
The HSBC’s chairman, Stephen Green, warned that the likely structure of the proposed Basel III accord on banking risks “overly gold-plating” investment banking capital requirements.
He also said that the proposed “net stable funded ratio” system of governing liquidity as part of the next stage of the Basel regulations would have a “massive” effect on the banking industry.
HSBC boss Stephen Green warns new bank crisis
Green reports, “I certainly believe that there were distortions in the labour market in the go-go years and I believe the FSA code will be directionally helpful and consistent with the G20 principles.
“The FSA code is mandatory. There were things that were going on that you cannot now do. I think it will take a year or two or three for all its effects to happen but I think it’s a useful enhancement to the way the market operates.”
HSBC has already been involved in allegations to have mis-sold mortgage-backed securities
HSBC are among 15 banks being sued in the US for mis-selling mortgage-backed securities. accused of packaging mortgage-backed securities into the complex investment vehicles that sparked the credit crisis because they contained sub-prime loans and elements of mortgage fraud.
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