Citigroup Chief Executive Vikram Pandit offered up a scathing review Monday of Basel III, saying the new rules do nothing to reduce pro-cyclicality or to level the playing field among different countries and differently regulated financial institutions.

If adopted as currently drafted, the new standards would likely impede credit availability when, and where, it is most needed, and could shift business to shadow markets that fill a niche akin to the way mortgage brokers exploited regulatory convention prior to the housing bust, Pandit said.

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