The Basle Committee signaled last week that it still intends to meet its self-imposed June deadline for the final draft of the new Accord. To that end, the committee released a series of proposed revisions based on recommendations that followed the release of the October 2003 third consultative paper (CP3).

Bankers urged the committee to simplify the treatment of securitizations by revising the complicated Supervisory Formula Approach (SFA). Bankers argue that the proposed capital charge to liquidity facilities and revolving exposures is too high. They also suggest a new approach in treating rated "super-senior" CDS, explained analysts at Dresdner Kleinwort Wasserstein.

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