At a session of the US Senate held on Wednesday, senior executives of the country’s major banks warned about the possible adverse consequences of increased regulation of the sector, particularly in relation to the implementation of the Basel III rules proposed by the Federal Reserve.

Basel III represents an internationally agreed package of measures developed by the Basel Committee on Banking Supervision in response to the 2007-2009 financial crisis. The aim is to strengthen regulation, supervision and risk management in the banking sector.

Although the adaptation of Basel III to the US financial sector is still pending, several executives of major banks expressed concern in the Senate about the Federal Reserve’s proposal, which imposes stricter capital requirements.

Jamie Dimon, Chairman and CEO of JPMorgan Chase, warned that the proposal could “unjustified and unnecessary” increase the capital requirements of large U.S. banks by a range of 20 % to 25 %. Dimon noted that this would limit the ability of financial institutions to deploy capital at critical times, having a detrimental effect on the global economy, markets and businesses.

David Solomon, chief executive of Goldman Sachs, went even further by stating that the US proposal contradicts the essence of the Basel III Endgame rules, which are designed to set international capital standards without increasing the total amount. According to Solomon, the US proposal is “significantly stricter than any other jurisdiction” and would increase capital requirements by about 25 %.

Solomon cited statements by the Chairman of the Federal Reserve, Jerome Powell, and the Chairman of the Supervisory Board of the European Central Bank, Andrea Enria, to back up his arguments, noting that with the US rules, the requirements would be considerably higher for Europe’s systematically the largest banks, known as “G-SIBs.”

The executive also stressed that adopting this new regulation would result in an increase in credit costs for individuals and companies, exerting a negative impact on the country’s economy.

K. Tovar

Source: Telemundo

(Reference image source: Unsplash+)

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In a report revealed this Tuesday, it is highlighted that Disney has generated a significant economic impact in the state of Florida, exceeding $40 billion and contributing to the creation of approximately 263,000 jobs.

The report, commissioned by Walt Disney World and prepared by the consulting firm Oxford Economics, highlights that this entertainment giant has left $3.1 billion in local and state coffers during fiscal year 2022.

With four theme parks, two water parks and more than 25 hotels, Disney established itself as an essential economic catalyst for Florida. Adam Sacks, president of Tourism Economics, a division of Oxford Economics, emphasized that Disney’s economic influence extends both directly and indirectly through its supply chain and employee spending.

The report reveals that Disney’s presence in Florida has resulted in more than a quarter of a million jobs, making the company a relevant player in the state’s labor market. One in 32 jobs is attributed to Disney, and in central Florida, home to the popular theme parks, one in 8 direct jobs is linked to Walt Disney World.

The impact goes further, given that for every job created within Disney facilities, an average of 1.7 jobs are generated throughout the state, collaborating with around 2,500 businesses in Florida.

K. Tovar

Source: Infobae

(Referential image source: PAN XIAOZHEN, Unsplash)

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The World Travel and Tourism Council (WTTC) revealed through a report the figures released of the contribution that the tourism sector offers to the world Gross Domestic Product (GDP) showing a fall of 49.1 % in 2020, the half of the figures expressed in 2019.

According to the annual report, the impact it generated on the economy caused by the health crisis was surprising, in addition to the consequent loss of 4.5 billion dollars for this important sector.

“The huge losses show the first complete picture of a sector that is struggling to survive in the face of travel restrictions and quarantines, which continue to threaten the recovery of the world economy,” according to the report.

The Council pointed out that the loss in human capital was also significant, affecting 62 million jobs in the sector, representing a drop of 18.5 %, and only 272 million people were left with employment.

As specified in the statement, “these job losses have been seen in the entire ecosystem of the sector, especially in small and medium-sized companies, which represent 80 % of all companies in the activity. Furthermore, as one of the most diverse sectors in the world, the impact on women, youth and minorities was significant.”

K. Villarroel

Source: traveltradecaribbean

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