Please just one single capital requirement!

Sir you are absolutely right in that “Shock therapy is best cure for banks”, June 29, except for when ask for new “capital requirements” when what we most need is to a return to just one single capital requirement which would stop the regulatory arbitrage among different assets.

If you have not yet been able to figure out arbitrarily low capital requirements in favor of anything that can dress up in a good credit rating, is not the main cause for the banks being pushed into having an excessive exposure to anything dressed up in a good rating, I cannot but help you are indeed a bit dense… just like the regulators.