Bank regulators have not even begun to learn from their mistakes

Sir, I refer to Brooke Master’s “Banks are still struggling to learn from their mistakes” March 14.

Master writes: “bankers say that the real problem with the US stress tests is that they are too complicated, opaque and difficult to predict. Regulators counter that financial meltdowns can come from unexpected sources and banks need to be ready”.

But I would ask the regulators: “If you think that financial meltdowns can come from unexpected sources, and banks need to be ready… then please explain the rationale behind the current risk weighted equity requirements for banks.”

Sir, bank regulators have not even begun to learn from their mistakes… just look at Basel III digging our banks and our economies even deeper into the hole they made.

Just look at how central banks are launching QEs, without even noticing how blocked the channels of bank finance are.

@PerKurowski