In J.P. Morgan’s Q4 2021 earnings call, there was mention of something that surprised me greatly – the implementation of Basel IV. In Issue #26 of Monetary Mechanics, I covered some (but not all) of the most important features of the most recent suite of financial legislations and regulations governing large dealer bank balance sheet construction and behavior in the post-GFC period. Here is a brief review below for the people who have not yet read that.
