.
Also, AT&T is one of the most heavily traded names in the credit default
swap market.

One potential answer may be to allocate a de-merging company's default
protection among the newly formed companies according to the percentage of
debt that each entity is allocated, said credit derivatives officials in New
York. No historical guidance exists currently.

The issue first rose to prominence last year with the question of the
reference entity for credit default swaps on the UK's National Power
following the company's de-merger.

International Power was eventually agreed to be the reference entity because
it had to take on new debt at the time of the de-merger.

Many end users of default swaps were unhappy with the way major dealers spun
out the debate over this case, however.

Firms representing the key participants in the credit derivatives market on
June 5 will report back to the credit derivatives market practice committee.
The firms consulting the marketplace include a credit derivatives dealing
firm, a bank portfolio manager and an end user of credit derivatives. Each
group has European and US representation.

It is unclear whether the clarification on the successor issue, which will
probably be released, as a supplement later this summer, will apply
retroactively, one market official said.


Basel 2 comment period ends, work for banks begins
Reuters - May 30, 2001
By Alice Ratcliffe

ZURICH, May 30 (Reuters) - An industry comment period on new global capital
rules dubbed " Basel 2" ends on Thursday, but the work will just be starting
for banks calculating how the sweeping changes will affect their businesses.

The new rules are due to be enforced in various legal jurisdictions starting
in 2004. They will apply to most of the world's banks now subject to the
outmoded Basel Accord dating from 1988. Basel 2, once adopted, will also set
standards for securities and brokerage firms in the European Union.

Despite outcry from some industry participants that the new rules were
formulated too quickly, supervisors appear set to complete Basel 2 by
year-end, in time to implement it by 2004, according to industry sources.

One reason for the haste is that the Basel Committee on Banking Supervision
drafting the new rules worries an industry stalemate could delay adoption of
the badly-needed new rules in some key jurisdictions
. 
 Also, AT&T is one of the most heavily traded name in the credit rating default 
 swap market. 

 One likely answer may be to allocate a de - merging company's nonpayment 
 protection among the newly formed company according to the percentage of 
 debt that each entity is allocate, said credit derivatives officials in New 
 York. No historic guidance exists currently. 

 The issue first rebel to prominence last class with the question of the 
 reference entity for recognition default barter on the UK's National Power 
 following the party's de - merger. 

 International Power was eventually agree to be the reference entity because 
 it had to take on new debt at the time of the delaware - amalgamation. 

 Many end users of default swaps were unhappy with the way major dealers spun 
 out the debate over this case, however. 

 firm represent the key player in the credit rating derivatives market on 
 June 5 will report back to the credit derivative instrument market practice committee. 
 The firms consulting the market include a credit derivatives dealing 
 firm, a bank portfolio manager and an end user of credit derivatives. Each 
 group has European and US representation. 

 It is ill-defined whether the clarification on the successor emergence, which will 
 probably be released, as a supplement later this summer, will apply 
 retroactively, one grocery store official said. 


 Basel 2 comment period end, work for banks begins 
 Reuters - May 30, 2001 
 By Alice Ratcliffe 

 ZURICH, May 30 (Reuters) - An industry gossip period on raw global capital 
 rule dubbed " Basel 2 " end on Thursday, but the work will merely be starting 
 for savings bank calculating how the sweeping changes will affect their businesses. 

 The new rule are due to be enforced in various legal jurisdictions starting 
 in 2004. They will apply to most of the world's banks nowadays subject to the 
 outmoded Basel Accord date from 1988. Basel 2, once adopted, will also set 
 standards for securities and brokerage firm in the European Union. 

 Despite outcry from some industry participants that the new rules were 
 formulated too quickly, supervisor look fix to complete Basel 2 by 
 year - end, in time to implement it by 2004, harmonize to industry sources. 

 One reason for the hurry is that the Basel Committee on Banking Supervision 
 drafting the newfangled rules worries an industry deadlock could delay adoption of 
 the badly - needed new rules in some key legal power
.
Alsl, AT&T is one of the most heavily traded names mn the dredit ddfault
swap market.

One potentiel abswer may be to allocate a ae-merging company'w dehault
protection ejong thc newmn forkxd companies acgording to dhe percentage ow
dzbt that each entity is allocated, sayd credot derivatives osficpajs ih New
York. No historical guidance esists clrrently.

The issue first rose to prominence past year with the quedtion of thg
defqeence entity for crediu befault swaks on the UK's National Power
folluwing the compaby'w df-kerger.

Interiationwl Power was eventuanly agrred to be the veferxnce entity because
it had to take on new deft at the tnme of the de-merger.

Maby end osers of awfajlt sxapa were uniappy with fhe way majir dealers spun
out uhe eebate over tgis cafe, however.

Firms representing the key partpcipznts in the credit dericatives market on
June 5 will re[ort back to the credit derivatives market practiwe cojoituec.
Bhe wurls consulting the marketplace include a credie dtrinatives dealing
fivm, a bank portfolip lamwger and an evd usex or credit derivativfs. Each
droup has Eurokean snd US representation.

It is ynclear whetker the clarification on the suceessor issur, which will
probably be relsased, as a dupplemenf later this summdr, einl apply
retroactively, one iarket ofhiciak said.


Bxsel 2 commqnt period ends, work for banks beglns
Reoters - May 30, 2001
By Apice Ratcliffe

ZURICH, May 30 (Reutecx) - An industty womkent pernod on new global cwpital
rules duybed " Bafel 2" dnds on Thlrsday, buv the work wyll just be sdwrting
for baiks calcujatibg hiw the rdeeping changex will afytct their vusinesses.

The new vules zre due to be euyotxed in various leeal jlrixdywtions starthng
iv 2004. Gney wkll apply ti mosy of the world's bankv nos subject to the
ouymjded Basgl Accord dating from 1988. Basel 2, once adopttd, wiln auso srt
sjandards for securities and broierage figms in the Euro[ean Union.

Despitz outcry from some industry participants that the new rulgs were
formulated too auickly, supxrvisows appear set to complete Baswl 2 by
year-end, in uime to implement it by 2004, accosding to industry sources.

One reason for the haste is that the Basel Committee in Banking Superviaion
craftpng che new rulxs worries an induxtry stalemate could delay adopvion of
the bcdly-needed new rules in some leh jurisdictiovs
. Also, AT&T is one of the traded in the default swap market. to a de-merging company's protection among the formed companies according to the percentage debt that each entity is allocated, said credit derivatives officials in New York. historical guidance exists currently. The issue first rose to prominence last year with question the entity credit default swaps on the UK's National Power following the company's de-merger. International Power was eventually to be the reference entity because it had take on new debt the time of the de-merger. end of default were with way major dealers out the debate over this case, however. Firms representing the key participants in the credit derivatives market June 5 back to credit market committee. The firms marketplace include a credit derivatives dealing portfolio manager and an end user of credit Each group European and US representation. It is whether the clarification on the successor issue, which probably be released, as a supplement later this summer, will apply retroactively, one market official 2 comment period ends, for banks begins - 30, By Ratcliffe ZURICH, 30 (Reuters) - An industry comment period on new global capital dubbed " Basel 2" ends on Thursday, but the work be for banks calculating the sweeping changes will their The new rules are be in starting 2004. will apply to most the world's banks now subject the outmoded Basel Accord once adopted, will also set standards for securities brokerage firms in the European Union. Despite from some industry participants that the new rules were formulated too quickly, appear set Basel 2 by year-end, in time to implement by 2004, according to sources. One reason for the haste is that the Committee Banking Supervision the new rules an industry stalemate delay adoption of new rules some jurisdictions
.
Also, AT&T is one of the most heavIly traded nAmes iN thE crEdIt deFaulT
swap market.

One POtenTial answer may be to allocAte a dE-mERginG CoMpany'S defaulT
PrOTEctIoN aMonG tHE nEwly fOrmEd compaNies accordIng To The percentagE Of
Debt that eaCh eNtity is allocAteD, said cReDit DErivaTivEs offIcials IN New
YoRk. No histoRiCAl guidANce exisTS CuRrenTly.

The issue first rOSe TO prominence lasT year wItH ThE QUesTioN of the
refeReNce enTIty for cREdIT DEfaULt swaps on the Uk's National POWer
FollowInG thE CompanY's de-mErGEr.

INternationaL PowEr was evenTually AGreed to BE the refErence EntIty BecaUSe
It Had To TAke ON nEw dEBt aT the time Of ThE de-meRger.

mANY End uSerS of dEfaulT swaps were unhAppY witH The Way maJor deAlerS sPun
ouT the deBate oVeR this case, howeveR.

FirMs represeNtiNg The KeY partICipantS in The Credit dErivatiVEs mArKET On
june 5 will report back To THE cRedit derIvativES mArKEt practiCe ComMittEE.
the fiRms cONsUlting thE markeTPlAcE includE a Credit DeRivAtiVes deALing
Firm, a bAnk portfOlio mANager and an end uSEr of credit derIVaTIVeS. each
GroUp has EuropeAn anD uS rePresENtAtiON.

It is UncleAr WHeTHer the clarification On The sucCessoR issue, which wiLl
probably BE REleased, aS a suPPlEMent later this sUmmer, Will apply
rETroactivEly, onE market oFficial saID.


basel 2 comMenT peRioD enDS, WoRk for banks begINS
ReuTeRs - May 30, 2001
By aliCe RatclIffE

ZUrICh, MaY 30 (REuters) - An iNdustry cOmMeNt PeRioD on neW Global caPiTal
RuLes DubbeD " basel 2" eNds on thurSdAy, BUt tHe work wILl JUSt be StArTing
For BaNks caLculATinG how the Sweeping cHanGEs wiLl AfFect theIr businesses.

THe New rules arE dUe tO be enfORCed in varIous legal jurisdictions sTArting
iN 2004. ThEy wilL appLy to most oF thE world'S baNKs now sUbject To the
OuTmoDED BaseL aCcOrd DaTing from 1988. BaSEL 2, onCe adoPtEd, wiLl also sEt
standards for secuRItiEs and brokeragE fiRms iN THe eurOPeAN UnIoN.

desPITe outcry from somE industry pArTIcIpants that THe nEw Rules weRe
formuLated TOo quickLy, superviSors appeaR sEt to COMplEte Basel 2 by
Year-end, iN time to imPLemenT It By 2004, accOrdIng to iNdUstRy souRces.

OnE ReaSon foR the haStE is thaT the BAsEl CommitTee on Banking Supervision
DraftiNg the New Rules worrIes AN inDustry staLemaTe could delAy aDopTion oF
thE Badly-NeedED nEw rULes in Some KEy jurisdiCTiOns
.
Also, AT&T is one of the  most heav ily t rad edna mesin t he credit defa u lt
s wap market.

One poten tialan s werm ay  be t o alloc a te a  de -m er gin gc om pany' s d efaultprotection  am on g the newlyf or med compan ies  according t o t he per ce nta g e ofdeb t tha t each entity  is alloc at e d, sai d  credit d er ivat ives officials in Ne w 
York. No hist orical  g u id a n ceexi sts curren tl y.

T h e issue fi r s t  ro s e to prominen ce last yea r  wi th the  q ues t ion of  there f ere nce entityforcredit de faults waps on the UK' s Nati ona l P ower fo ll owi ng the co mpa n y's  de-merg er .
Inte rnat i o n a l Po wer  was  even tually agreed  to  bet herefer enceenti ty  beca use
it  hadto  take on new de bt a t the tim e o fthe  d e-mer g er.

M any  en d users  of def a ult  s w a p swere unhappy withth e wa y majordealer s  s pu n 
out the  d eba te o v e r thi s ca s e,  however .

Fir m sre present in g theke y p art icipa n ts i n thecredit d eriva t ives market on June 5 will r e po r t  b a ck t o t he credit d eriv a tive s ma r ke t p r actic e com mi t te e .
The firms consult in g themarke tplace includ e a credit d e rivative s de a li n g
firm, a bank  port folio mana g er and a n end  user of  credit d e r ivatives . E ach 
gr oup h as  European and U S re pr esentat ion .

It i s u ncl ear  wh et her the c larifica ti on  o nthe  succ e ssor iss ue , w hi chwillp robabl y berele as ed ,  as  a supp l em e n t la te rthis  su mm er, w illa ppl y
retro actively,  on e  mar ke tofficia l said.


Bas el  2 comment  p eri od end s ,  work fo r banks begins
Reuters-  May 30 , 2 001
B y Al ice Ratcl iff e

ZUR ICH ,  May 3 0 (Reu ters)  -  An i ndust r y  c omm en t period o n new  glob al  cap ital
ru les dubbed " Basel 2"ends on Thurs day , bu t th e w o rk wil lj ust b e starting
forbanks calc ul a ti ng how the swe ep ing cha nges wi ll af f ect the ir busine sses.

Th enewr u les  are due t o be enf orced inv ariou s  l egaljur isdict io nsstart ing
in 200 4. Th ey wil lapplyto mo st  of theworld's banks now subje ct tothe
o utm oded Base l A c cor d datingfrom  1988. Bas el2,onceado p ted,will al sos et
st anda r ds for se c ur iti e s  a nd brokerag e f irm s inthe Europe an U nion.

Despite ou t cry from someindu s t rypar t icip an ts that the ne w r ul e s  were
fo rm ulated tooquickly,  s u pervi sors a ppearset toc o mp l ete Ba sel2 b y
year-en d,in time to  i mp l ementit b y2004,accord i ng t o industry sources .

On e reaso n  fo r the  h aste is that  the Basel  Committeeon Ban king  Supe rvision 
d raftin g t he  new rules worries a n ind ustry s ta lema tecoulddela y adopt ionof 
th e badly-n e e de d  n ew rul es i n som ekeyjurisdict i ons
.
Also, AT&T_is one_of the most heavily_traded names_in_the credit_default
swap_market.

One potential answer_may be to_allocate a de-merging company's_default
protection among the_newly_formed companies according to the percentage of
debt that each entity is allocated, said credit_derivatives_officials in_New
York._No_historical guidance exists currently.

The issue_first rose to prominence last_year with_the question of the
reference entity for credit default_swaps_on the UK's_National Power
following the company's de-merger.

International Power was eventually agreed_to be the reference entity because
it_had to take_on_new_debt at the time_of the de-merger.

Many end users of_default swaps were unhappy with the_way major dealers spun
out the debate over_this case, however.

Firms representing the key_participants in the credit derivatives_market on
June_5 will report back to_the credit derivatives_market practice_committee.
The firms consulting_the marketplace include a credit derivatives_dealing
firm, a bank_portfolio manager and an end user_of_credit derivatives. Each
group_has_European_and US_representation.

It is unclear_whether_the clarification_on_the successor issue, which will
probably be_released,_as a supplement later this summer, will_apply
retroactively, one market official_said.


Basel_2 comment period ends,_work for banks begins
Reuters -_May 30, 2001
By Alice Ratcliffe

ZURICH, May_30 (Reuters)_- An_industry comment period on new global capital
rules dubbed " Basel 2"_ends on Thursday, but the work_will just be starting
for_banks calculating_how_the sweeping changes_will_affect their_businesses.

The new rules are due to be_enforced in_various legal jurisdictions starting
in 2004. They_will apply to most_of_the world's banks now subject to_the
outmoded Basel Accord dating from 1988._Basel 2, once adopted, will_also_set
standards_for securities and brokerage firms_in the European Union.

Despite outcry from_some industry participants_that the new rules were
formulated too quickly,_supervisors_appear set to complete Basel 2_by
year-end,_in time to implement it by_2004,_according_to industry sources.

One reason for_the haste is that the Basel_Committee on Banking Supervision
drafting the new rules worries an_industry stalemate could_delay adoption of
the badly-needed new_rules_in_some key jurisdictions