WASHINGTON U.S. Treasury Secretary Timothy Geithner agreed with European Union financial markets chief Michel Barnier on a December 2011 date to implement new Basel trading book rules, the U.S. Treasury said on Friday.
Geithner and Barnier met privately and, according to a statement afterward, discussed the agreement reached by the Basel Committee on Banking Supervision on Sept 12 and its provisions to toughen capital and liquidity standards.
"They reaffirmed their intention to implement the agreement in the respective jurisdictions in accordance with the internationally-agreed timing," the treasury said. "Both sides agreed to a December 2011 implementation for the Basel trading book rules."
They also agreed that systemically important global financial firms must boost their capacity to absorb losses and face stricter supervision and regular stress tests, Treasury said.
Geithner and Barnier also said that the were committed to ensuring that all over-the-counter derivatives reforms, on both sides of the Atlantic, were applied in a coordinated way, the U.S. Treasury said.
(Reporting by Glenn Somerville, editing by Andrew Hay)