Basel 3 Accord is Near.

What Basel 3 is is a tight money policy. It is similar to Basel 1 but quite different from Basel 2 that allowed loose money and a lot of off balance sheet banking, leading to the ponzi housing scheme in America. See also:
Basel iii Accord is near
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  1. Under Basel 2, international banks were said to be at an advantage: they could lower their capital requirements through the use of advanced models. This, it was feared, would widen the gap between rich country banks and emerging market banks. In my view, Basel 3 holds out the promise that some emerging market banks, including those in India, can turn the tables on their rich country counterparts.
    Basel III

  2. Well, certainly, Kevin, international banks had advanced models and those were easy money models that underestimated risk of all mortgages going south at the same time. Those models were flawed and I also strongly believe they were fraud!

    So then, Basel 2 allowed little capital requirements and ended up with massive bailouts when the models failed. I bet, Kevin, that the capital requirements for Basel 3 will end up being diluted or postponed.


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