But FT and the experts can’t stop themselves from admiring the “emperor’s clothes”.

Sir Peter Dunkley refers to “published intellectual nonsenses that were later to become the bank risk capital rules” and splendidly analyzes the new industry in regulatory arbitrage that resulted from these. “Another flawed idea – but regulators might be convinced” November 18.

This, which is great writing from an economics teacher in a college in Switzerland, stands in stark contrast with the way that for all practical purposes the Financial Times and other “experts” still seems to be in awe of the “emperor’s clothes” of the Basel Committee.