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Recent Editions
Risk Channel
North America
The Federal Reserve plans to loosen capital requirements for the largest U.S. banks, a move aimed at encouraging lending and helping lenders compete with private credit firms. In a speech, Fed vice-chair for supervision Michelle Bowman said upcoming reforms to the implementation of global Basel III “Endgame” rules would slightly reduce overall capital requirements for major banks, including JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley. The changes include adjusting how extra capital buffers for systemically important banks are calculated, which would lower surcharges and offset increases tied to Basel reforms. The proposal follows heavy lobbying from the banking industry after earlier plans in 2023 could have raised capital requirements by about 19%. Regulators argue the revisions will better align requirements with actual risk, while critics warn that weakening safeguards could reduce protections put in place after the 2008 financial crisis. Details of the reforms are expected to be released by U.S. regulators this week.
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Risk Channel
UK/Europe
Criminal prosecutors in Italy have requested trial for Amazon's European unit and four of its managers over alleged tax evasion said to be worth around €1.2bn ($1.38bn). Reuters says the move is unprecedented for a case of this kind in Italy, because Amazon agreed in December to pay €527m, including interest, to Italy's Revenue Agency to settle the dispute. After December's settlement, Amazon said it would "forcefully defend its position on the potential ungrounded criminal case," adding "Unpredictable regulatory environments, disproportionate penalties, and protracted legal proceedings are increasingly affecting Italy's attractiveness as an investment destination."
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