Newsletter Nov 2006: Timing of market risk rules may hit US banks

US banks will feel the impact of new capital requirements for their market trading activities more quickly than any changes arising from the proposed rules for calculating credit and operational risk capital levels. And this will put some US banks at a disadvantage compared with their investment bank competitors, and foreign banks, according to an assessment by Federal Financial Analytics (FedFin), a Washington DC-based firm advising on regulatory matters.