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Discussion: (2 comments)

  1. Wayne Abernathy

    Well, details are important. U.S. banks will actually have to have a 6% leverage ratio. 5% applies to the holding company, but 6% is the truly binding constraint. And before people get all sanctimonious about the virtue of the leverage ratio to tame risk, don’t forget that the leverage ratio is totally risk blind. It applies the same ratio to the asset regardless of how risky or safe it is.

  2. Benjamin Cole

    Interesting post. Tell us why Canada banks never bomb. Copy the northerners?

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