The Basel Committee on Banking Supervision has agreed that supervisors may allow banks to apply a 0% risk weight to claims on the European Stability Mechanism (ESM) and European Financial Stability Facility (EFSF).  The ESM and EFSF will be included in the list of entities receiving a 0% risk weight set out in paragraph 56 of the document Basel II: International Convergence of Capital Measurement and Capital Standards: A Revised Framework – Comprehensive Version, June 2006.  Claims on the ESM and EFSF will therefore also be included as Level 1 High Quality Liquid Assets (HQLA) in accordance with paragraph 50 (c) in  Basel III: The Liquidity Coverage Ratio and Liquidity Risk Monitoring Tools, January 2013.

http://www.bis.org/publ/bcbs_nl17.htm

JPMorgan Chase & Co. (JPM) and HSBC Holdings Plc (HSBA) face a European Union complaint as soon as next month as the bloc’s antitrust chief races to fine a quartet of financial companies that snubbed rate-rigging settlements. . .

http://www.bloomberg.com/news/2014-03-13/jpmorgan-to-hsbc-face-eu-rate-rigging-fines-from-almunia.html

Royal Bank of Scotland Group Plc’s credit rating was downgraded by Moody’s Investors Service after the lender reported its biggest full-year loss since its bailout in 2008.

http://www.bloomberg.com/news/2014-03-13/rbs-cut-by-moody-s-outlook-negative-on-risks-of-restructuring.html

Federal regulators on Thursday announced the latest case to stem from the decade-long insider trading investigation into SAC Capital Advisors, taking aim at a former employee for prompting a number of illegal trades. . .

U.S. bankers who vowed last year to boost profit by shrinking expenses are finding costs don’t always stay cut . . .

http://www.bloomberg.com/news/2014-03-14/bofa-to-citigroup-find-new-expenses-negating-cost-cuts.html