That way we should be able to put our banks on a stronger footing to lend, with so much less distortion.
I warned many about the coming crisis, long before it happened, on many occasions and in many places, even at the World Bank. The regulators did not want to listen and that´s ok, it usually happens, but what's not ok, is that they still do not seem to want to hear it. “We can easily forgive a child who is afraid of the dark; the real tragedy of life is when men are afraid of the light.” (Plato: 427 BC – 347 BC)
Saturday, June 16, 2012
My urgent proposal for the capital requirements for banks
I propose that regulators urgently calculate any individual bank´s capital to total assets ratio, and ask for it to apply a capital requirement that increases ever so slightly over a fairly long time on any new asset it acquires… until reaching some basic goal, like the original 8 percent of Basel II, but more real.