Utterly failed but yet promoted bank regulators, evidence the mother of all lack of accountabilities.

Sir, Robert Jenkins holds that “For the good of his own reputation as well as that of his institutions and British banking, Mr Flint should go”, “How the HSBC chairman can restore accountability at his bank” March 11.

Agree, but so should also all regulators who had anything to do with those failed and outright stupid regulations which caused the current crisis, and which keep on dangerously distorting the allocation of bank credit to the real economy.

These regulators were so dumb that, instead of looking at whether bankers were perceiving credit risks correctly or not, and at how they were managing those perceived risks, they decided to look at the same risk bankers were perceiving in order to set their equity requirements for banks. And, obviously, clearing for the same perceptions a second time, distorted all common sense out of the allocation of bank credit… and caused banks to create excessive and dangerous exposures to the AAArisktocracy.

The Jaime Caruana, Mario Draghi and Mark Carneys of the bank regulatory world, instead of being sent home in shame after the Basel II flop, were promoted and some of them even instructed to proceed with elaborating Basel III.

As a result they still do not even acknowledge their mistake

Talk about lack of accountability!

@PerKurowski