Despite the best effort of US bankers to block progress, the new rules passed. This means that banks around the world will be required to hold more capital to avoid the necessity of a bailout during the next crisis. Bankers argued that this would drive up costs and prevent them from lending. Unless there was a lending spree since the recession started that is double top secret, they weren't doing much of that anyway. Besides, outside of the pampered banking industry who really wants to fund another banker bailout?
Let the banks fund their own bailout.
The new rules would make banks roughly double the amount of capital set aside as a buffer against possible losses, slash stockholder dividends and executive pay if that stockpile falls short, and limit lending during economic boom times. Combined, those measures are intended to shape the behavior of bank managers and investors in unexplored ways - trying, for example, to have them curb lending in good times in the hope that asset bubbles won't give way to a costly bust.
The standards could have broad implications for the amount and cost of credit available around the world, as banks adjust their balance sheets and business plans to comply. Banks will have two years to meet the basic requirements proposed by the committee, though some of its provisions will not be implemented for up to eight years.
