40 Percent!?

Reuters is reporting today and other sources are echoing three regulatory sources saying that the  impending capital rewrite will propose risk weighted assessments (RWAs) between 40 and 90%, up from the minimum 20 and 70% Basel standards.  The rationale according to Reuters is a desire not to set big-bank RWAs lower than those applicable to smaller banks.  However, the rule could also amend smaller-bank RWAs if regulators are or become so inclined.