Andy Haldane’s speech at Jackson Hole today, The Dog and the Frisbee, is the single best speech by a regulator or financier anywhere in 2012. It is a splendid application of complexity science to the field of financial regulation. It is a succinct analysis of why “more begets more,” why big finance is leading us…
As expected, the big banks are stepping up their campaign against tighter regulation. This week Mr Dimon, CEO of JP Morgan Chase intensified his foray against the stricter requirements of Basel III, now looming very real. Patriotism is, as always, run up the mast: the capital requirements are “Negative for America.” This notwithstanding the fact…
Is there anything in particular that you oppose in the Basel III proposal? Did they go too far? You could have an opinion about various components of it but the reality is that the old Basel rules allowed people to leverage too much and we found that out. The new rules change that. We’ll get…
Professor Anat Admati, one of the distinguished economists who were recently widely noted as calling the bluff on bank CEO assertions about the negative effects of stricter capital requirements, has written a letter addressing the nonsense touted in the Financial Times by such bankers and their supporters. Since many readers will not have access to…
This weekend the G20 Summit takes place in Seoul. The Basel III enhanced capital requirements (among other standards) come up for adoption. Even as seasoned present and former regulators, such as Mervyn King and Paul Volcker, suggest that the new standards might not be sufficient, bank CEOs such as Mr. Pandit of Citigroup and Mr.…
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