Gaap, subordination and the cost of connection

The week on Risk.net, August 5–11, 2016

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GAAP  standards mean $50–100bn capital hit TLAC subordination requirements loom in Europe COUNTERPARTY risk plan raises compliance jitters   COMMENTARY: The connection problem It was the turn of European banks to be alarmed this week, as they came to grips with a potentially costly new compliance requirement. The Basel Committee, aiming to enforce better visibility of cross-counterparty links and risks, suggested two years ago that banks should identify any control relationshi