The latest fad in bank regulation folly is to assert that much higher capital levels are the solution to the problem that was supposedly solved by Dodd-Frank. Amar Bhide provides a nice rejoinder to the fantasy that all we have to do is make banks hold more capital: Yet focusing mainly on how much banks […]
Posts Tagged ‘bank regulation’
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G20 Opts To Pursue Tougher Capital Standards
Posted by Tom Lindmark on September 6th, 2009
The statement from the G20 Finance Ministers meeting in London would appear to constitute a win for Tim Geithner and Alistair Darling. I use the word appears because it is always wise not to take these sorts of pronouncements at anything more than face value. At any rate, the statement seems to indicate that the […]
The Regulators Overlooked The Basics
Posted by Tom Lindmark on August 20th, 2009
An excellent article by Floyd Norris in the New York Times today. He points out that banks are failing at an alarming rate not because of exotic derivative investments but simply because they made bad loans. Banks are now losing money and going broke the old-fashioned way: They made loans that will never be repaid. […]
Europe Moves To Tighten Down On Banks
Posted by Tom Lindmark on May 27th, 2009
The European Union appears to be heading towards centralized regulation of the region’s financial services industry. From the Telegraph: “It’s now or never,” said Commission President Jose Manuel Barroso. “If we cannot reform the financial sector when we have a real crisis, when will we?” Three new bodies are to be created with a permanent […]
