Wednesday, May 30, 2012
Run a regression for all the different serious problem loans of banks around the world, like lousy securities disguised as splendid triple-A’s, loans to Icelandic banks, loans to the real estate sector in Spain, loans to a Greek government, and other similar… on the risk-weight of 20 percent or less established in Basel II, and which allowed the banks to finance what´s mentioned above holding only 1.6 percent or less in capital, which means an authorized leverage of bank capital 62.5 to 1 … and then draw your conclusions.