Its Official, the lucky number is 7.
"Central bank governors and senior regulators have agreed new rules designed to prevent a repeat of the recent financial crisis" According to the BBC.
You would be forgiven if you thought that surely by now they would have worked out the 'why' and be honest about it. Surely, after almost 3 years, millions in Public funds (or debt) being used to rescue banks (a private debt) the community of people designated to lead on a global footing in terms of banking regulation will come up with a solution to the problem with which they are affected. No they just do something which is mildly inconvenient for themselves.
It reminds me of a saying most sales people use...If you don't know the answer, then baffle them with bullshit. Don't believe me?
According to Lord Turner the Basel III meant a "tightening of global capital standards and will play a major role in creating a more resilient global banking system". Mr J.C. Trichet ECB chief said it was "a fundamental strengthening of global capital standards". Listening to them both you would be forgiven for thinking that this is the answer to the problems of the financial crises. Which according to them was the fact that banks didn't have enough money to come clean on their obligations. which is true... however they stop short of telling you why the banks didn't have the funds. and no it wasn't just because of a property bubble bursting. It is because the fundamental system of FRB is deeply flawed. How can you continue to live in a society where your banks are allowed to lend the money on a fractional reserve basis?
What is disappointing is the fact that these numbers are being trumpeted around like the banks savior.
Maybe HSBC should come out with a new Advertisement on the number seven. Something along the lines of. "In heaven, the number 7 represents the amount of days God took to create the Earth + a holiday.
While is Basel, the number 7 represents the percentage the banks keep to themselves in order to make the world a better place + a "conservation buffer"....HSBC The worlds local bank."
Maybe HSBC should come out with a new Advertisement on the number seven. Something along the lines of. "In heaven, the number 7 represents the amount of days God took to create the Earth + a holiday.
While is Basel, the number 7 represents the percentage the banks keep to themselves in order to make the world a better place + a "conservation buffer"....HSBC The worlds local bank."
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