Big Banks Keep Watering Down Global Reserve Rules
Episode Description
Even today, global banks still set aside too little cash to prevent another financial meltdown. Attempts to force them to do so -- like Basel III -- fall well short, says Wharton finance professor Richard J. Herring.
Brief Summary
Professor Richard Herring discusses bank regulations and liquidity requirements to prevent future financial crises, highlighting political pressures and proposed changes.
Key points
- The Shadow Financial Regulatory Committee. A non-official group of experts meets to review financial proposals and regulations.
- Liquidity Rules Under Scrutiny. The Basel committee's liquidity rules are being challenged and revised amidst political pressures.
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Episode highlights
- The Shadow Financial Regulatory CommitteeA non-official group of experts meets to review financial proposals and regulations.“It's a group of former Regulators, academics, and lawyers.”0:57May 2, 2013
- Liquidity Rules Under ScrutinyThe Basel committee's liquidity rules are being challenged and revised amidst political pressures.“Liquidity should be cash and maybe something a little bit less than cash.”4:20May 2, 2013
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