Mr. Regulator: Do we now need political risk weighted capital requirements for banks?

Sir, John Authers writes how “The Children’s Investment Fund (TCI)… is challenging the Spanish government’s move to reduce the tariffs that the Spanish airport operator Aena can charge, [because] that will reduce Aena’s value by more than $1bn… and TCI is the second stakeholder in Aena after the Spanish government itself.” “Political risk lowers the appetite for infrastructure deals” June 11.

Holy moly! It looks like we now could need political risk weighted capital requirements for banks. I wonder how that meshes with the current zero percent risk weighing of government debt?

@PerKurowski