Comments on: The politics of Basel III

By: Ghandiolfini

Ghandiolfini — Mon, 05 Apr 2010 08:01:10 +0000

By childish substitution:

DOS: it’s really a form of providing Muslim reinforcements to the Jewish Basel II forces more than it is a whole new capital-adequacy system.

(Jewish, capital and liquidity, trying to cut through some of the accounting practices), partly horrible Basel II patches (Muslim, fiddling with haircuts, CVA, credit ratings).

By: Storyburn_com

Storyburn_com — Sun, 04 Apr 2010 22:45:07 +0000

What about them?

By: Ghandiolfini

Ghandiolfini — Sun, 04 Apr 2010 18:46:54 +0000

Romans, Greeks, what about Jews and Muslims ?

By: RichardSmith

RichardSmith — Sun, 04 Apr 2010 13:20:29 +0000

Well you could start with this superb overview, which identifies some of the different strands running through Basel III – partly wholly new stuff (Roman, capital and liquidity, trying to cut through some of the accounting practices), partly horrible Basel II patches (Greek, fiddling with haircuts, CVA, credit ratings). Some in the end qualified good cheer about the capital & liquidity rules; but the rest of BIII looks duff.

http://www.nakedcapitalism.com/2009/12/b asel-iii-%E2%80%93-the-ok-the-unfinished -and-the-ugly.html

It is Waldman http://www.interfluidity.com/v2/716.html who really lands a blow on the approach of instituting capital rules without sorting out the structure of banks.

So – Basel III potentially all duff, without changes in the structure of big banks. Let’s try and guess what big banks think about that.

By: jonradin

jonradin — Sun, 04 Apr 2010 12:15:21 +0000

Basel III has the potential to dramatically affect the strength of the international financial system. Unfortunately the individuals, as you mention, who flutter back and forth between high paying bank employment and powerful national regulatory employment have neither the requisite objectivity nor interpersonal distance to set speed limits for the various major banks. If last year and next year when you revolve back to working for a bank you will get bonused millions for getting from A to B as rapidly as possible, what incentive do you have to set a speed limit just because this year you are a regulator?

By: amsterdammer

amsterdammer — Sun, 04 Apr 2010 09:26:49 +0000

Dear Felix,

You seem to forget that the “show” and the road path
underlined by the last G20 involved preliminary
work by the “Financial Stability Board” and the I.M.F,
due in April, so wait for the eggs, they were due in
April.
The public speeches of Senor Jaime Caruana being very rare, I refer to seemingly the most recent: “In his recent visit to Australia, Jamie Caruana, head of the Bank for International Settlements, which is overseeing global rule changes for banks, said capital requirements were the ”speed limits” of lending, while in a visit
ealier to Mexico Senor Caruana declared: “Regulation
will lead to the restriction of credit”. So we are likely headed for the cliff, a.k.a they watch them daily
looking out of the B.I.S headquarters’windows in Basel

By: The1eyedman

The1eyedman — Sun, 04 Apr 2010 02:19:42 +0000

Interesting, lets just sit on the wall and watch the show!:-)