Thursday, January 24, 2013
And now the Financial “Stability” Board with respect to the compensation of bankers practices is discussing “Ex ante risk alignment” and “Ex post performance adjustment”
I am just sad they can still not understand that, as regulators, their own principal “Ex post performance adjustment” must be to realize, at long last, that their “Ex ante risk alignment of the capital requirements for banks” is absolutely cuckoo. This is so because what is really dangerous for banks and regulators alike is what is perceived as “absolutely safe”, and never what is perceived as “risky”.
When will they face up to the fact they have got it totally, 100 percent wrong