We investigate the economic consequences of the implementation of a particular aspect of Basel III in the U.S. Specifically, the Basel III proposal and the corresponding U.S. rule (hereafter referred to as the removal of the AOCI filter) to make the inclusion of unrealized fair value gains and...

For many years the regulatory capital of commercial banks in the United States has been based on the book value of assets and liabilities. That has changed with the implementation of Fair Value Measurements in FAS 157. Now banks and regulators must view capital from a Fair Value perspective....

For many years the regulatory capital of commercial banks in the United States has been based on the book value of assets and liabilities. That has changed with the implementation of Fair Value Measurements in FAS 157. Now banks and regulators must view capital from a Fair Value perspective....