Avinash Persaud defends Basel III
September 23, 2011
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He has long been a vocal critic of the Basel process where the banking sector captured regulators and got regulation by internal models (i.e. by themselves). Today, however, Persaud turns around and defends Basel III as the best we can get now.
Interesting observation at the end, that we need more risk transfer, i.e. insurance companies and pension funds should absorb more long term risk, but solvency II moving them in other direction. See also IMF GSFR, chapter 2 for more on this issue.