Basel II Modified in Response to Market Crisis
23 July 2009
Mayer Brown Legal Update
The Basel Committee on Banking Supervision has adopted amendments to the Basel II Capital Accord responding to the financial markets crisis. Among other things, the amendments impose substantially higher capital requirements on resecuritization exposures (like CDOs of ABS), whether held in the banking book or the trading book, and impose an incremental capital charge on securitization exposures held in the trading book.