When the Senate banking committee of the US, "the Home of the Brave" has hearing on Basel rules, let’s pray “The Risky” get some voice.

Sir, Shahien Nasiripour gives a good account of how “Banks attack Fed’s plans on Basel III accord” in order to defend their interests. November 14. My, how much voice the banking community has when compared to by those most negatively affected by Basel rules, II or III. 

Basel rules determine that banks can lend to those considered not risky, “The Infallibles”, holding much less capital than when lending to those considered “The Risky”’, like unrated small businesses and entrepreneurs. 

That of course translates into to banks being able to earn a much higher expected risk-adjusted return on equity when lending to “The Infallible” than when lending to “The Risky”. And that results in an odious and dangerous regulatory discrimination against those already being naturally discriminated against by the banks, being charged higher interest and receiving smaller loans. 

Nasiripour refers to the US Senate banking committee hearings on the proposed Basel rules, and I just hope that in "the Home of the Brave” “The Risky” will also get some voice. But, seeing for instance how a Financial Times over many years has shown absolutely no interest in that issue, I can’t say I am harboring any major hopes.