Janet Yellen: Basel II-III risk-weighted capital requirements do not make banks finance the future, only refinance the past
Sir, Robin Harding congratulating Janet Yellen for her appointment to chair the Fed gives her some “unsolicited advice” in “A memo to the world’s most powerful economist”, October 12.
And so would I like to do. But, as Harding says, since Yellen must now be extremely busy receiving millions of unsolicited advices, I have given long thoughts to how I could condense, in a single tweet short phrase, all of my arguments against that horrible and stupid bank regulation mistake which unfortunately survived Basel II and made it into Basel III.
The title of this is what I came up with. Anyone with better ideas… please!
PS. On this October 12, may I remind you that risk-weighting, is precisely the kind of regulations that stops an America from being discovered.
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