US To Accept Basel Accords

The Federal Reserve will probably accept the Basel accords which would make US banks hold more capital.

According to The Wall Street Journal,

While big U.S. banks that are asked to maintain higher cushions could be forced to raise prices on certain transactions to compete with rivals, they also could benefit from lower funding costs if they are perceived to be likely recipients of government aid in a market shock or steep downturn.

It is difficult to say how much the decision would impact a weak bank like Back of America (NYSE: BAC) which might be forced to raise billions of dollars to reach a level at which the Federal Reserve could say it is in compliance. B of A has already raised billions through the sales of debt to billionaire Warren Buffett