Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
is that most bankers would tell you that there is actually a LOT of regulatory oversight. The whole Basle II framework to assess risk and allocate capital against it has created huge risk assessment bureaucracies in each bank; compliance requirements ("know your customer" checks to fight money laundering) are increasingly tough, etc...

And yet I have the feeling that banks will still be wrongfooted by the next big crisis. Either it's complacency because they think they're covered, or it's that bankers learnt the ropes and do deals that go around the guidelines while appearing to be within, or more likely that systemic risk is really, really hard to quantify and thus is ignored to a large extent (the low probability "inch wide, mile deep" fault).

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Mon Apr 23rd, 2007 at 08:42:25 AM EST

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