The effect of Basel 3 and other bank regs...Winners and Losers

The net effect of all these regs to discourage financial innovation, increase capital and liquidity costs, encourage consolidation based on scale economies, discourage moves to universal banking based decreased scope economies, encourage moves to lower tax regimes (mainly in the east), discourage securitization, discourage otc derivs, encourage exchanges and CCPs, increase risk management especially CCR and MR, encourage collateralization, make trading books smaller, banking books bigger, increase demand for ops efficiency,increase reg arbitrage, increase compliance and reporting costs, discourage alternative assets.