January 13, 2013
Sir, Brooke Masters reports that the Basel Committee for Banking Supervision has decided to allow “a broader variety of assets, including some equities and all investment grade corporate bonds” to count as part of the liquidity banks will require to have; and she titles it “Basel Committee relaxes liquidity rules for banks” January 12.
Though the title is technically correct, no doubt, an alternative title would be “Basel Committee tightens the rules on those they do not want banks to lend to”. And that title would be much more significant, since it would directly address one of the most destructive consequences of the Basel Committee’s bank regulations, namely that by giving preferences to “The Infallible” they are odiously discriminating against “The Risky”, and who are, acting on the margin, often the most important actors of the real economy.
Of course, another title could be that if “The Basel Committee’s Inspector Javert, keeps on fanatically pursuing The Risky”