Trump Will Ease Basel Capital Standards, According to Prominent Economist

As reported by MLex, Simon Johnson, a Massachusetts Institute of Technology management professor and former chief economist for the International Monetary Fund, says that after Donald Trump takes office as president, the U.S. would likely join European regulators in easing implementation of Basel III capital standards. Such a move would signal the end of the post-financial crisis period during which stringent oversight of financial institutions was coordinated globally, Johnson said.

According to Bloomberg, Sam Theodore, managing director for financial institutions at Scope Ratings AG, when  interviewed, said, “I think that before Trump, Basel was going to be softened down significantly…And now with Trump, I think the whole thing is going to become more of a symbolic exercise.”

However, other former government officials and economists also commented that Trump’s regulatory efforts are impossible to predict since he still hasn’t yet disclosed his position on international financial regulation.

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