The Fed issued a statement Friday morning that they are delaying the implementation of the Basel III capital rules which were to go into effect January 1st. 
Apparently JPM and Goldman whined that they were not ready for the implementation of the new rules, so they have been postponed indefinitely.  Is anyone surprised?

Full Federal Reserve statement below:

U.S. regulators on Friday delayed the effective date of a global agreement on greater bank capital buffers reached in response to the financial crisis of 2008.

The rule delay could help big banks such as J.P. Morgan Chase & Co., Citigroup Inc., Goldman Sachs Group who must ultimately comply with the rules, as well as smaller banks who also will have to meet the requirements.

The Fed gave no timetable for the implementation:

Specifically, the Federal Reserve and two other bank regulators introduced a proposal in June to implement the global agreement known as Basel III that suggested an effective date for institutions to comply of Jan. 1.

However, the U.S. regulators agreed Friday that “due to the wide range of views” expressed by interested institutions and others that a delay was necessary.

They did not provide a substitute effective date for the rules, arguing that they are “working as expeditiously as possible to complete” them.

Apparently gold will have to take out the $2,000 level on it’s own bullish fundamentals without assistance from tier 1 asset status, which it will no doubt do quite easily and successfully.

Click here for full report from MarketWatch:
The Fed’s full press release:

Agencies Provide Guidance on Regulatory Capital Rulemakings

The U.S. federal banking agencies issued three notices of proposed rulemaking in June that would revise and replace the current regulatory capital rules. The proposals suggested an effective date of January 1, 2013. Many industry participants have expressed concern that they may be subject to a final regulatory capital rule on January 1, 2013, without sufficient time to understand the rule or to make necessary systems changes.

In light of the volume of comments received and the wide range of views expressed during the comment period, the agencies do not expect that any of the proposed rules would become effective on January 1, 2013. As members of the Basel Committee on Banking Supervision, the U.S. agencies take seriously our internationally agreed timing commitments regarding the implementation of Basel III and are working as expeditiously as possible to complete the rulemaking process. As with any rule, the agencies will take operational and other considerations into account when determining appropriate implementation dates and associated transition periods.

Media Contacts:
Federal Reserve Board Barbara Hagenbaugh 202-452-2955
FDIC Andrew Gray 202-898-7192
OCC Bryan Hubbard 202-874-5770
  1. Everyone outside the US is just looking and shaking their heads.  No wonder the Federal Reserve Note is losing it’s global reserve status.  It is clear TPTB will sacrifice everyone and everything to keep these banks alive another day.

    • Yeah exactly! This will all end eventually. The US economy will soon collapse which will also cause the collapse of all economies around the world and especially the collapse of the whole fiat system. Everyone’s main question is how long will the system still stay alive?

  2. These banks are ALREADY over the cliff’s edge! By avoiding these new rules, they’re attempting to slow their decent. Sorry boys, 32 feet per second per second is a Law of Physics that has close analogy in Economics. See you at the bottom.

  3. Regardless of what the Fed does, the people throughout the world are already voting with their money: They are buying and holding physical precious metals as their own Tier 1 Assets, thus increasing the demand to the point that price increases naturally follow along in due course of time.  People will decide on their own what they want to save as money, and more and more people are deciding to save silver and gold instead of paper ‘anything’, and there is nothing that they can do to stop this trend.
    The Fed’s refusal to implement the new rules is just another sign of how bad things really are for their crumbling paper financial system.

    • More people are deciding to keep their savings in physical gold and silver because these two metals are real money and most importantly, because they are realizing that their savings in fiat currencies are loosing their purchasing power.

  4. seriously they can do this forever … after the crash they got bagged so badly that they could have been lynched in almost any other age…. despite the anger and the noise they awarded themselves enormous pay checks and made noises about reforming … 4 years later every reform placed on the table is in tatters … the banking system is closer than ever to imploding being bailed out to the tune of 40 billion a month + they are making the rules, engineering massive fraud and intent on maintaining their power at everyone elses expense … this is just another example of just how irrelevent congress, obama , romney really are wall street runs the country and the banks run the world …

    • That is true! Obama, Romney Congress, etc, are all just a show so that everyone would think that they have most of the power in the USA and that they are the last hope of the world. It is actually the banking system ran by the elites who are controlling this world. They will eventually lose their powers once this system will collapse.

  5. By adding more rules to the market, the markets will become less of a free market. If all the rules on the markets are removed, then finally, there will be a true free market which will help all the economies around the world. So, the less there are rules, the better it is and the more there are rules, the worst it is.

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