April 25, 2015

Under the rules of the Basel Committee for Banking Supervision, Cirque du Soleil would probably never have existed

Sir, with respect to the enormous success of Cirque du Soleil, Ludovic Hunter-Tileny writes that Mr. Laliberté ascribes his rise to a gambler´s boldness [and] Government grants and a substantial overdraft from a Quebec community bank” “Sun king of circus take the high wire” April 25.

That was in 1984… today after the Basel Committee started to regulate; and concocted equity requirements for banks that are higher for what is perceived as risky than for what is perceived ex ante as safe, meaning banks earn higher risk adjusted returns on equity financing what is "safe" than financing what is "risky", that bank credit would most probably not have been awarded. Please reflect on that.