After months of failed negotiations, European finance ministers today agreed on a final draft CRD-IV package to implement Basel III (see FSM Report CAPITAL173). This action has considerable significance not only in the EU, but also in the U.S. as, had negotiations broken down, the overall Basel III framework might also have come unglued. Now, this plan will be introduced to the European Parliament, although it may still be changed before official adoption. The Economic and Financial Affairs Council (Council) had been previously stymied in its efforts to finalize the proposal by disagreement over whether to require maximum harmonization or allow national regulators to impose prudential requirements beyond the CRD IV-mandated levels.
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