July 18, 2016

Gordon Brown, in order to defend globalization, you need to stand up against dumb rulers of it, like the Basel Committee

Sir, Gordon Brown writes: “Leaders must make the case for globalisation” July 17. Absolutely, but in the same vein, leaders must make the case against dumb globalization, and nothing so dumb has been globalized as the pillar of the Basel Committee’s regulations, the risk weighted capital requirements for banks.

Sir, what’s more to say, you clearly do not agree with my assessment, or there is some other factor in play. Anyhow, I refer you again to a brief memo on what I consider to be so mind-blowing wrong.

PS. I just discovered a Deutsche Bundesbank paper in which they now try to deduct from research some self-evident conclusions.