Tuesday, April 26, 2016
Saturday, April 23, 2016
In short, any senseless risk aversion, whether in bank regulations or elsewhere, condemn our economies and nations to fizzle out.
Friday, April 22, 2016
Thursday, April 21, 2016
Let us tell the story of the Basel Committee’s risk weighted capital requirements for banks this way:
Tuesday, April 19, 2016
Current bank regulators are a serious threat to economic growth and financial stability; and they promote inequality.
Thursday, April 14, 2016
IMF & World Bank Spring Meetings: Time again for finance ministers not daring to ask bank regulators THE QUESTION
Monday, April 11, 2016
The way governments are cooking it perhaps we should all run to Panama, for our children and grandchildren’s sake.
William C Dudley, Fed New York, does still not understand how risk-weighted capital requirements for banks distort
Thursday, April 7, 2016
The regulatory powers of our bank regulators need to be urgently regulated, at least those of the Basel Committee.
Sincerely, are we really sure all these regulators in the Basel Committee, and in the Financial Stability Board, are just not some Chauncey Gardiner characters?
Tuesday, April 5, 2016
Again the Basel Committee for Banking Supervision evidences it is a clueless producer of systemic risks.
Wednesday, March 30, 2016
With Basel II, banks were authorized to leverage their defined equity:
Unlimited times when lending to AAA to AA rated sovereigns
62.5 times to 1 when lending to the AAA to AA corporates, the AAArisktocracy
35.7 times to 1 when financing residential housing
And only 12.5 times to 1 when lending to unrated citizens SMEs and entrepreneurs
And that of course allowed banks to earn quite different expected risk adjusted returns on equity not based on what the market offered, but based on what the regulators dictated.
And regulators, finance professors, FT editors and journalists, and many other experts simply do not understand that this distorts the allocation of bank credit to the real economy.
What are we to do?