The FED proposes the standardised approaches in Basel 2

Having said that Basel 2 was only for the 20 largest banks, and that those firms had to use the most advanced methods in Basel 2, the FED has backtracked. It is suggesting that the standardized framework would be available for banks, bank holding companies, and savings associations not subject to the advanced approaches. This is very interesting. Why the U turn I wonder? There is a story here, but I don't know what it is yet

Update. Apparently WaMu and Wells Fargo, of the big banks, want to use the standardised approach. And the FDIC has swallowed its concerns and is supporting the roll out of Basel 2 to the smaller banks. This is really as shame. The FDIC was one of the few voices of sanity in the international regulatory `we haven't got it wrong really oh no despite the biggest banking crisis in a generation' hullabaloo. But as to why the FED won, I am still in the dark.