Fed may shun global risk rules banks spent billions to meet

The Federal Reserve may scrap international measures aimed at assessing bank health in favor of imposing its own rules, frustrating bankers who have spent billions of dollars retooling their books to meet global standards.

According to Fox Business, Fed officials are conerned the measures known as the Basel III capital rules are flawed and can be gamed by companies.

The Basel model allows banks to determine how much debt they can take on by using their own models and computer systems to calculate risk.

Instead of the Basel rules, Fed Governor Daniel Tarullo promoted the use of the Fed's own yardstick of bank health, a test of how bank assets would perform during market turmoil or an economic slump.

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