Comments on: ANALYSIS-EU, U.S. supervisors face derivatives test http://blogs.reuters.com/financial-regulatory-forum/2010/09/15/analysis-eu-u-s-supervisors-face-derivatives-test/ Mon, 31 Oct 2016 15:40:16 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: PerKurowski http://blogs.reuters.com/financial-regulatory-forum/2010/09/15/analysis-eu-u-s-supervisors-face-derivatives-test/comment-page-1/#comment-1227 Thu, 16 Sep 2010 11:50:05 +0000 http://blogs.reuters.com/financial-regulatory-forum/?p=7975#comment-1227 Why do you worry so much on arbitrage between countries when the financial regulators have imposed much more damaging risk arbitrage within the countries?

Basel III announced higher capital requirements but that when keeping the same risk-weights will only increase the arbitrary regressive regulatory discrimination against the small business.

A Sovereign rated triple-A will not be affected at all by higher capital requirements since being risk-weighted at zero means that zero on whatever higher is still zero.

Securities and borrowers rated triple-A, like those securities collateralized by lousily awarded mortgages to the subprime sector, and like AIG; and who are risk-weighted at only 20% will only be marginally affected.

But all those small businesses and entrepreneurs on whom we so much depend on for our next generation of jobs, because they are perceived as risky they are risk-weighted at 100% and will have to bear and pay for the full load of capital requirements.

With regulators like these of the Basel Committee, our chances of getting out of this crisis are meager indeed.

In due time financial history books will regard the Basel Accord and the perceived risk-phobia it brought on, as something absolute mindless from a financial regulatory aspect… but meanwhile what are we to do being stuck with the same growing-bigger-to-fail-bank, the same regulators and the same faulty paradigm.

I invite you all to a Kindergarten class on financial regulators that will make it easier for you to understand the disaster of having bank regulators that are fixated on seeing the gorilla in the room and have completely lost track of the ball. http://bit.ly/c66DLp

Per Kurowski

A former Executive Director at the World Bank (2002-2004)

http://subprimeregulations.blogspot.com/
http://www.theaaa-bomb.blogspot.com/

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