September 14, 2012
On September 14, Thomas M. Hoenig, Director of the Federal Deposit Insurance Corporation (FDIC), delivered a speech in Washington, D.C. entitled, “Back to Basics: A Better Alternative to Basel Capital Rules.” Director Hoenig’s remarks address the history of Basel I, II and II.5 and identify issues with the existing system, particularly in terms of adequately assessing capital. He suggests that the Basel III capital rules must be simplified so that they are more understandable and enforceable for regulators and industry participants, and compatible with the “tangible capital measure.”
Director Hoenig's Speech