The Global Bank Regulatory System Remains Crippled
Episode Description
New bank regulations coming out of Basel III "almost certainly will not" prevent another global financial crisis, similar to the one the world is still recovering from, says Richard J. Herring, Wharton finance professor.
Brief Summary
The episode critiques Basel committee regulations on liquidity and their potential ineffectiveness in preventing future financial crises.
Key points
- The Basel Committee's Challenge. 20 countries aim to prevent future financial crises, but their efforts may fall short.
- Liquidity Rules Watered Down. New liquidity rules are softened, raising concerns about future financial stability.
- The Urgency of Action. Immediate action is crucial to prevent rapid declines in financial institutions.
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Episode highlights
- The Basel Committee's Challenge20 countries aim to prevent future financial crises, but their efforts may fall short.“They're not coming up with a way that would prevent the crisis.”1:50May 3, 2013
- Liquidity Rules Watered DownNew liquidity rules are softened, raising concerns about future financial stability.“They watered down liquidity rules, no pun intended.”2:15May 3, 2013
- The Urgency of ActionImmediate action is crucial to prevent rapid declines in financial institutions.“There has to be immediate action or the institution is simply gone.”4:54May 3, 2013
