Can The Fed meet Basel benchmarks?

The Taxpaying Majority has not read the two thousand plus page financial reform bill that was recently passed by a congress that also didn’t read the bill. It is possible banking lobbyist submitted legislation that will finally rescue the banking system.

Being proactive, lobbyist may have inserted stringed measures, which meet Basel 3 rules and will prevent another bank bailout? Based on the Fed’s balance sheet can it meet capital requirements set under Basel 3? Can the Fed successfully lobby the Senate and President to translate into law and regulation requirements set under the Basel 3 rules?

Will passage of Basel 3 financial requirements prevent another trillion-dollar financial stimulus package as due date approach? Can the Federal Reserve System (FRS) meet a minimum common equity requirement of 4.5% plus a capital conservation buffer of 2.5%?

How much in dollars is 10% of Fed total capital? Will selling toxic asset back to bailed out banks qualify the Fed as compliant before January 1, 2015? What will be the new leverage ratio under Basel 3? What will returns look like under greater constraints on earnings distribution,discretionary bonuses and high dividends?

Will a counter cyclical buffer prevent another round of excess aggregate credit growth such as in the treasury market? How much is a minimum Tier 1 leverage ratio of 3%? Will a combination of capital surcharges; contingent capital and bail-in debt regulate the Fed sufficiently to prevent another credit crises.

According the Basel 3 rules the Fed has 2 years and 3 months to get its act in order.