Indeed, in early August of this year the Federal Reserve and the other U.S. bank regulators released some very specific proposals for public comment. The comment period ends in early November. After assessing these comments together with those already received by the Basel Committee, the U.S. banking agencies will seek appropriate changes in the proposals.
The need for Basel II, as the proposed revised accord is called, arises because modern risk measurement and management practices, including the increasing ability to securitize assets, have made Basel I increasingly out-of-date, or should I just say, increasingly irrelevant, for our largest and most complex banking organizations.