International banking regulations agreed upon in Basel, Switzerland, last week will reduce the probability of a future financial meltdown, U.S. Treasury Secretary Timothy Geithner said before the House Financial Services Committee today.
The so-called Basel III reforms impose new rules for capital reserves that the world's banks would have to keep on hand as a cushion to avert future financial meltdowns. The G20 nations are expected to ratify the agreement at their meeting in November.
Deutsche Bank (DB), Germany%u2019s largest lender, is to announce a share sale worth as much as 9 billion euros ($11.5 billion) as it prepares for tighter regulations and aims to purchase a larger stake in Postbank.
The plan may be announced early next week, The New York Times reported without naming its sources. Also next week, the Basel Committee on Banking Supervision may decide that banks should hold bigger capital reserves.