BIS's Wellink outlines Basel II amendments

The Basel Committee will review the capital charges for collateralised debt obligations (CDOs) set out in the Basel II framework, said Nout Wellink, the president of the Netherlands Bank and chairman of the committee.

Wellink said that the committee had to evaluate whether the charges were calibrated appropriately in relation to their risks and complexity following the impact of the recent global turmoil on CDOs.

Supervisors are also working on a credit default risk charge for the trading book

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