August 08, 2016
Sir, again, Lucy Kellaway is bravely shouldering her responsibility to socially sanction nonsense. That kind of sanction is extremely important, effective and much needed. Way to scarce nowadays. “Millennials ought to ignore career advice from BCG boss”, August 8.
How I wish she would help me out to socially sanction the bank regulators who came up with the loony concept of risk-weighing the capital requirements for banks, and, in order to keep the bank system safe, to assign a risk weight of 20% to what is AAA to AA rated and of 150%, 7.5 times larger, to what is rated below BB-.
All as if the world of the ex ante perceived as highly speculative risky below BB-’s, pose greater dangers for our banks than what is ex ante perceived as prime and absolutely safe.