Chris Perkins, president of investment firm CoinFund, argues that the Basel Committee on Banking Supervision’s (BCBS) capital reserve requirements act as a ‘chokepoint’ for the crypto industry. By enforcing higher reserve requirements for crypto holdings, banks face reduced return on equity (ROE), making crypto-related activities financially unviable. Perkins describes this as a ‘nuanced’ way of suppressing crypto adoption by making it too expensive for banks to engage. The rules incentivize banks to invest in high-ROE businesses instead, further marginalizing crypto. This regulatory approach could significantly slow the integration of cryptocurrencies into traditional banking systems.
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0 posts last weekTD Bank Cuts Costs: $3B Portfolio Wind Down & 2,000 Layoffs
Toronto Dominion Bank (TD) has announced a significant restructuring plan to reduce costs, which includes shutting down its $3 billion US point-of-sale financing operations and cutting approximately 2,000 jobs (2% of its workforce). The bank aims to improve efficiency, automate processes, and reallocate resources to core businesses like its proprietary bank card operations. This decision follows TD’s $3.1 billion settlement last year for violating the Bank Secrecy Act, where it failed to monitor high-risk transactions linked to criminal activity. The restructuring is expected to enhance return on equity (ROE) and operational excellence while addressing past compliance failures.
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