Bankruptcy Blogs

Despite Basel III's shortcomings, I have yet to hear of a better solution than combining risk-weighted assets with a strong leverage ratio. Both require uniform guidelines for banks and disclosure.

Moving to an expected-loss framework would be a step in the right direction but entails a great deal of subjectivity, model risk and confusion for investors trying to compare institutions.

Energy Future Holdings Corp.’s creditors signed confidentiality agreements to look at financial information that isn’t public, a step toward bankruptcy, The Wall Street Journal reports.

A study by The Clearing House Association found that a proposed leverage ratio would force banks to raise $200 billion in capital or shed roughly $3.7 trillion in assets. The study also found that the leverage ratio would be a binding capital rule for two-thirds of big-bank assets.

A Dallas mint that makes commemorative coins and “alternative” money for people who are wary of the U.S. dollar has run into problems with its own finances.

The 25-worker Mulligan Mint Inc.—which has the power to create a “complementary currency system that can fill in the blanks where the U.S. dollar lets us down,” according to its president—has filed for bankruptcy after officials in June discovered that part of a $1.4 million shipment of silver was missing.