The Bank for International Settlements (BIS), based in Basel Switzerland, is somewhat of a clearinghouse for the World’s Central Banks. Although little-known outside the Banking Community, it acts as a focus on important financial issues, most importantly is Bank Equity Capital. It does not have any legal power; however, it can act as a safeguard (or, perhaps, referee) when one country doesn’t wish to properly rein-in it’s banks. It’s Basel III Policy, which hasn’t been settled yet, is intended to set updated Bank Equity Standards–especially for those international banks that might be considered Too Big to Fail. Basel III truly needs more teeth.
There is an interesting article, Bankers Call for Wider Measures to Stem Crisis, by Jack Ewing, in today’s NY Times. Basically, it points to the frustration of many Central Bankers Around-the-World, in dealing with the EuroZone Debt Crisis. Basically, it says that other bankers feel that the Europeans need to solve this crisis.