An applicant needs common equity Tier 1 capital of 4.5 percent of risk-weighted assets, significantly less than the 9.5 percent required under the old rules that still apply to existing banks. The Bank of England says it will use its discretion to give startups more time than before to build the additional capital required under Basel III.
H/T Barry Ritholtz
How To Become A Bank
Seth Klarman: Investors Can No Longer Rely On Mean Reversion
"For most of the last century," Seth Klarman noted in his second-quarter letter to Baupost's investors, "a reasonable approach to assessing a company's future prospects was to expect mean reversion." He went on to explain that fluctuations in business performance were largely cyclical, and investors could profit from this buying low and selling high. Also Read More
Infographic source: Bloomberg