Bank Supervisors in U.S. Impose Tougher Rules Without Overhaul - Bloomberg.com

In the Bloomberg story below we see the beginning of new bank regulation.

Interest rate and credit risk analysis will move to the front of banker's concerns as the Fed begins to tighten credit in the months to follow.

For now, short funding remains the tactic of choice, but the first signal of increasing short rates will signal the time to start extending the maturity of liabilities.

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       San Francisco

U.S. banking supervisors are using existing authority to raise standards for capital, liquidity and risk management without waiting for the Obama administration and Congress to hammer out a new regulatory structure.

Agencies led by the Federal Reserve and the Office of the Comptroller of the Currency this year are set to propose rule revisions that would increase the amount of capital large banks must set aside against the risk of trading losses, according to government officials. The revisions would follow recommendations of the Basel Committee, the global coordinator for banking regulations based in Switzerland.

U.S. regulators are also proposing stronger guidelines on liquidity risk and this month told banks to improve strategies to guard against the possibility of an abrupt increase in interest rates. The renewed scrutiny comes as firms that received taxpayer support, including Goldman Sachs Group Inc. and JPMorgan Chase & Co., report earnings swelled by gains from securities trading.

http://www.bloomberg.com/apps/news?pid=20601068&sid=aQ0cQwZ3g0xI