In retrospect it was a mistake to let Citibank and Goldman Sachs define what a good market or a good regulation might be.  

Well - who'd have thought, etc? If you hand the hen house over to the foxes, it's not as if they're golng to eat everything and leave a bloody mess.

Props to LY for posting about this. I miss her posts here - always worth reading.

LY:

I will be telling them to abandon any focus on capital adequacy requirements.  It's far too late for that to have any effect on the fall out.  They should focus instead on reviewing and modernising their bankruptcy laws, enabling transfer of customer accounts and nominee assets from failing banks to healthy banks, providing for rapid auction of failed bank businesses and assets, and other practical measures for limiting loss, contagion and debilitating paralysis in the markets.

Now that is cheerful, isn't it?