Lewis Kaden’s 5 Pros, 5 Cons
On Financial Reform

Citigroup vice chairman Lewis B. Kaden gives his view of five positive contributions from financial reform proposals under development in the U.S. and in Europe and five areas that require “a great deal of further study.’’

POSITIVE #5. Increased Capital Reserves.

There are specific requirements in the Basel Accords that should be reviewed, he said, that we thought strongly should be reviewed, such as the treatment of minority stakes and smaller firms. But it’s better that J.P. Morgan Chase, Bank of America, Wells Fargo and other active participants in providing mortgages, credit cards and other forms of consumer credit continue to do that “rather than pushing those families into an unregulated market or worse” because of the incentive structure created by the risk weightings in the Basel rules.


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