Comments on: U.S. has much to prove on new bank capital rules http://blogs.reuters.com/breakingviews/2010/09/23/u-s-has-much-to-prove-on-new-bank-capital-rules/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: PerKurowski http://blogs.reuters.com/breakingviews/2010/09/23/u-s-has-much-to-prove-on-new-bank-capital-rules/comment-page-1/#comment-3833 Fri, 24 Sep 2010 12:13:49 +0000 http://blogs.reuters.com/columns/?p=4106#comment-3833 And the  “more than 2,000 pages of financial reform” do not mention even once the Basel Committee or the Financial Stability Board… how about that for a disconnect! 
But just you wait till the tea-partiers and other questioners get hold of what follows: In the land of the free and the home of the brave, the banks are not free and are instructed to be coward, all as a result of the orders given by the Basel Committee. 
A visitor from outer space, when observing its bank regulations, would most likely conclude that the US is communistic and dumb-dumber. 
Communistic because current bank regulations require a bank to hold 100% of the standard capital requirement when lending to a small business or entrepreneur, but only 0% of it when lending to its triple-A rated government.  
Dumb because getting out of this economic imbroglio requires a new generation of jobs and the small businesses and entrepreneurs have the best chances of finding these; and dumber because no bank crisis have ever occurred from excessive lending to small businesses and entrepreneurs perceived as risky, they have all resulted from excessive lending to what is perceived as not risky and later turn out to be risky… like over-indebted triple A rated private or governments.  
Per Kurowski
A former Executive Director at the World Bank (2002-2004) 

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By: plubber http://blogs.reuters.com/breakingviews/2010/09/23/u-s-has-much-to-prove-on-new-bank-capital-rules/comment-page-1/#comment-3832 Fri, 24 Sep 2010 11:13:24 +0000 http://blogs.reuters.com/columns/?p=4106#comment-3832 True. It won’t be the rest of the world to be fooled next time round. Many lessons were learnt about wall street’s manupulative practices. No contagion effect and any disasterous consequences would be contained geographically. The important thing is to get the capital rules implemented speedily, set a target date in the near term (preferrably less than 1 year for transition), and monitor any inadequacies from then on. One thing for sure is that Basel III is more risk-oriented than previous versions and the wiggle room will be minimized.

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By: y2kurtus http://blogs.reuters.com/breakingviews/2010/09/23/u-s-has-much-to-prove-on-new-bank-capital-rules/comment-page-1/#comment-3825 Thu, 23 Sep 2010 21:20:26 +0000 http://blogs.reuters.com/columns/?p=4106#comment-3825 Dear Mr. Goldfarb.

Why don’t you look at the capital ratios of the top 10 banks (by assets) in Europe and then compare them to the top 10 banks here in the good old USA and tell me what you find…

(I think you will find that our banks are better capitalized than yours)

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