The perceived risks are never as dangerous as those not perceived

Sir, according to what Tom Braithwaite reports Tim Geithner has embraced humility concluding that it is not possible “to make a judgment about what’s systemic and what’s not until you know the nature of the shock”, “Geithner queried risk concept” January 14.

Let us hope he can now used that as an intellectual bridge to understand why it is useless and dangerous having the regulators arrogantly playing sophisticated risk managers with their capital requirements based on perceived risks when we know that all bank crisis are caused by risks that have not been perceived.