Banks Boosted By Basel

In the following video, Motley Fool financial analysts Morgan Housel and Matt Koppenheffer discuss the Basel Committee's recent softening of its Basel III liquidity capital rules. While stringent requirements that banks maintain a certain level of cash liquidity do protect against another liquidity crisis like the one that led to the financial disaster in 2008, they hamper banks' ability to lend money if the banks are forced to maintain that money on their balance sheets; it slows economic growth. Morgan tells us here how the new softening of the rules gives banks more options, but doesn't come without risk. 

Make sure you start 2013 with a bang and get the inside scoop on what Motley Fool super-investor David Gardner will be buying this year. He's crushed the market in his Stock Advisor and Rule Breakers portfolios for years, and now I invite you to a personal tour of his flagship stock picking service: Supernova. Just click here now for instant access.

 


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2191731, ~/Articles/ArticleHandler.aspx, 7/25/2014 4:02:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement