11/13/2012– A group of former senior US financial regulators has urged authorities to drastically cap big banks’ borrowings, adding to a growing chorus of sceptics who are challenging the international response to the financial crisis.

In a letter on Thursday, the Systemic Risk Council recommended to US bank regulators that they consider tightening the so-called leverage ratio that limits banks’ ability to fund themselves with debt and other forms of borrowing. Banks with large derivatives operations would be subject to even tougher requirements under the proposal.

Read the full article, US regulators urged to outdo Basel III rules, on the Financial Times website.