Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Recs

0

The Sinister Side of Basel III

No one likes a bailout, and regulators have been working hard to prevent a repeat of the taxpayer-funded debacles of 2008 and 2009. Their solution? More capital. A lot more capital. 

The hope is, of course, that with more capital, systemically important banks like Wells Fargo (NYSE: WFC  ) and JPMorgan Chase (NYSE: JPM  ) will be able to withstand any losses with equity on the balance sheets and not require taxpayer money. The obvious trade-off is that return on equity targets will be more difficult to hit, even for regional banks like BB&T (NYSE: BBT  ) , Regions Financial (NYSE: RF  ) , or KeyCorp (NYSE: KEY  ) .

As is most often the case, its not the obvious consequences that will cause the most harm, its the unintended consequences. In the video below, Motley Fool contributor Jay Jenkins highlights some risks lurking in the shadow behind the rising Basel III capital requirements.

Many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.


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

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.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2555850, ~/Articles/ArticleHandler.aspx, 8/5/2015 8:35:08 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...

Jay Jenkins
jayhjenkins

Anticipating opportunity, filtering out the noise, and figuring out what it all has to do with the price of rice in China. Like me on Facebook here!

Today's Market

updated 11 hours ago Sponsored by:
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASD 5,105.55 -9.84 -0.19%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/4/2015 4:02 PM
BBT $40.64 Up +0.32 +0.79%
BB&T Corp CAPS Rating: *****
JPM $68.46 Down -0.07 -0.10%
JPMorgan Chase & C… CAPS Rating: ****
KEY $14.85 Up +0.10 +0.68%
KeyCorp CAPS Rating: ***
RF $10.37 Down +0.00 +0.00%
Regions Financial… CAPS Rating: ***
WFC $57.82 Down -0.09 -0.16%
Wells Fargo CAPS Rating: *****

Advertisement