http://en.wikipedia.org/wiki/Basel_III http://en.wikipedia.org/wiki/Basel_Accords Banks phony accounting is coming to an end. Basel III accords require banks to raise new capital and to stop accounting losses and "unrealized profits" as capital. They will require new capital when nobody is fool enough to invest in banks again. Well except for the gov't. Basel III won't actually make banks go broke again. It will just expose how broke they already were. The draft Basel III regulations include: * "tighter definitions of Common Equity; banks must hold 4.5% by January 2015, then a further 2.5%, totalling 7%. * the introduction of a leverage ratio, * a framework for counter-cyclical capital buffers, * measures to limit counterparty credit risk, * and short and medium-term quantitative liquidity ratios." First, the quality, consistency, and transparency of the capital base will be raised. * Tier 1 capital: the predominant form of Tier 1 capital must be common shares and retained earnings * Tier 2 capital instruments will be harmonised * Tier 3 capital will be eliminated. December 31, 2012 Tentative Target for implementation of Basel III Maybe there will be a (financial) doomsday on 2012?