And what about the elite of rogue regulators?

November 1999 in an Op-Ed in the Daily Journal of Caracas I wrote “The possible Big Bang that scares me the most is the one that could happen the day those genius bank regulators in Basel, playing Gods, manage to introduce a systemic error in the financial system, which will cause its collapse”… and so they did! 

The bank regulators decided that banks were to be allowed to leverage their capital much more when earning the risk-adjusted interest rates from those perceived as “not-risky” than when earning those same interests lending to those perceived as “risky”, which caused trillions of dollars in losses from investments in AAA rated securities collateralized with lousy awarded mortgages, and the trillions of dollars in excessive bank exposure to the “not-risky” sovereigns that are blowing up all around us. 

John Gapper writes about “A revolt against the risks of elite international finance” September 17, but, among the international elite, he fails to include the rogue regulators and who, by keeping their risk-weighting in Basel III, arrogantly keep on playing the role of risk managers for the world.