Basel 3 rules will wreck gold price suppression, LBMA warns Bank of England
Submitted by admin on Sat, 2021-05-08 12:19 Section: Daily Dispatches
12:29p ET Saturday, May 8, 2021
Dear Friend of GATA and Gold:
Pending "Basel III" regulations emanating from the Bank for International Settlements could destroy the clearing and settlement system for “unallocated” -- that is, “paper” or imaginary -- gold and silver, the London Bullion Market Association and the World Gold Council warned the Bank of England this week.
In a 58-page protest submitted to the Bank of England’s Prudential Regulation Authority, the LBMA and the World Gold Council complained that the “Net Stable Funding Ratio” provision of the Basel III regulations would require the London bullion banks to hold funds offsetting 85 percent of the value of the unallocated gold they hold for customers, and the banks could not afford this.