Not captured… raptured!
Sir in Mr Michael G. Mimicopoulos letter “Regulators too close to the regulated”, August 12, again we read about regulators being captured by the regulated. We sure wish that was all there is to it.
The real problem though is no that the regulators were captured but that they were raptured by the silly idea that they could control for risks with their capital requirements for banks based on a vaguely defined default risk and have the credit rating agencies do the risk-surveillance for them.
So raptured were they that even two years into the crisis they seem still as enamored with that idea as the first day it crossed their naïve and gullible minds.
Having to read, almost on a daily basis, serious frowns declaring about “risk-weighted” bank assets, as if those risk-weights were God sent and really meant something, drives me mad.
The real problem though is no that the regulators were captured but that they were raptured by the silly idea that they could control for risks with their capital requirements for banks based on a vaguely defined default risk and have the credit rating agencies do the risk-surveillance for them.
So raptured were they that even two years into the crisis they seem still as enamored with that idea as the first day it crossed their naïve and gullible minds.
Having to read, almost on a daily basis, serious frowns declaring about “risk-weighted” bank assets, as if those risk-weights were God sent and really meant something, drives me mad.
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