Bank Regulation’s Capital Mistake
Reversing the gigantism of banking ought to be the top financial-reform priority. Instead, the debate over bank regulation has been dominated by noisy – and pointless – discussion of banks' capital requirements.
https://prosyn.org/5QM8j8E
MEDFORD, MASSACHUSETTS – Imagine that the arguments triggered by the Hindenberg disaster were about the fire extinguishers and parachutes that airships should carry, rather than about the design flaws that might cause them to ignite. Unfortunately, today’s debates about banking reform have just this character.