Placing bets on the likelihood of big US financial regulatory reform (Premium)
Dodd-Frank isn’t going away but some the rules that underlay this massive regulation are going to change. The biggest deal is that the basic of concept of Risk-Weighted Assets is under attack and that, if passed, would alter the entire Basel III framework. But without getting dramatic, we take the position that we’re going to see some real regulatory change this year. Here are some projections of how the market will respond.