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The Return Of Bank Runs | Sheila Bair, Former FDIC Chair

Forward Guidance

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The Impact of Basel III on Credit Risk

The main issue is interest rate risk and how it's causing unrealized market losses on securities that are longer dated and have lower yields. The capital rules do not adequately take into account credit losses, he says. This is one of the many reasons why I and the FTIC traditionally have always strongly supported leverage ratio to complement the risk-based standards.

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