Fed Delays Basel III Rules Indefinitely

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