Market risk-weighted assets have plunged in the ten years since we started compiling them in the Risky Finance banking tool, but if the Federal Reserve has its way, they may go back up again. The threats from banks are loud and clear on the Fed’s Basel Endgame comment page: if you raise capital like this, our customers will lose access to capital markets products. But with trading revenues close to $90 billion a year, would the banks dare to follow through on that threat?
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After years of shrinking, capital requirements for trading businesses are set to surge |