Let us not ignore the criminally bad bank regulators who manipulated and distorted the bank credit markets.

Sir, Paul Robinson writes in his letter “The story unraveling before us is one of criminal minds working together to circumvent and deceive regulatory authorities that would leave any normal industry”

I will not discuss that but, in the same breath, it must be also be said that regulators, for whatever reasons, stupidity or ideology, criminally manipulated and distorted the bank credit markets in favor of the governments and against the citizens.

In 1988, with the Basel Accord (Basel I), regulators adopted the use of credit-risk-weighted capital (equity) requirements for banks and set the following risk weights: Lending to the government was given a Zero percent risk weight; and lending to the citizens’ SMEs and entrepreneurs was awarded a 100 percent risk weight… what more is there to say​?

@PerKurowski