Newsletter Sep 2007: New push for consensus on trading book risk

LONDON – When the Basel Committee’s key Policy Development Group (PDG) meets in London on September 20-21, bankers will be keenly watching to see if regulators have resolved the sharp differences blocking publication of draft principles for the treatment of banks’ trading book risks. Approval of these draft principles had been expected in July at the last meeting of the Basel Committee, the body of regulators that effectively sets international prudential banking standards. But this is thought to have been prevented by objections from German regulators worried about the possible impact on their banks.