Basel IV: Goldman Could Be Winner, European Banks Losers

U.S. banks led by Goldman Sachs are seen to be the biggest winners in any overhaul of global banking norms, expected to be announced at the year-end or in early 2017. In contrast, European banks could face a 20% downside if the so-called Basel IV regulations require banks to maintain higher capital, Morgan Stanley, which evaluated the potential impact of new rules on 75 global banks, said in a research note Nov. 21. The report titled, “Insight: ‘Basel IV’ – Exploring the Next Wave of Bank Regulation,” expressed caution on banks in Australia, where local regulators back stiffer standards. Basel…