{"id":8446,"date":"2013-09-17T03:33:38","date_gmt":"2013-09-17T07:33:38","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=8446"},"modified":"2013-09-17T03:33:38","modified_gmt":"2013-09-17T07:33:38","slug":"higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis-naked-capitalism","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2013\/09\/17\/higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis-naked-capitalism\/","title":{"rendered":"Higher Bank Capital Requirements are Necessary but not Sufficient to Prevent the Next Crisis | naked capitalism"},"content":{"rendered":"<p>Bill Black explains why higher capital requirements for banks is only part of the solution. Capital is simply an accounting measure of Assets minus Liabilities and bankers are not above gaming this to their advantage.<\/p>\n<blockquote>\n<p>&#8230;.There were hundreds of Office of Thrift Supervision examiners whose opinions repeatedly proved vastly superior to the economists\u2019 predictions during the S&amp;L debacle. Akerlof and Romer concluded their 1993 article with these sentences in order to emphasize this message to their peers.<\/p>\n<p>The S&amp;L crisis, however, was also caused by misunderstanding. Neither the public nor economists foresaw that the [deregulation] of the 1980s were bound to produce looting. Nor, unaware of the concept, could they have known how serious it would be. Thus the regulators in the field who understood what was happening from the beginning found lukewarm support, at best, for their cause. Now we know better. If we learn from experience, history need not repeat itself. (Akerlof and Romer 1993: 60)<\/p>\n<p>Larry and Janet: please listen to the regulators in the field. Please end Ben Bernanke\u2019s practice of placing economists in charge of Fed supervision. The Fed\u2019s economists are a major source of the Fed\u2019s problems&#8230;.. the solution needs to come from the people in the field. That is particularly true with regard to detecting systemic risks.<\/p>\n<\/blockquote>\n<p>Read more at <a href='http:\/\/www.nakedcapitalism.com\/2013\/09\/bill-black-higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis.html'>Bill Black: Higher Bank Capital Requirements are Necessary but not Sufficient to Prevent the Next Crisis \u00ab naked capitalism<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bill Black explains why higher capital requirements for banks is only part of the solution. Capital is simply an accounting measure of Assets minus Liabilities and bankers are not above gaming this to their advantage. &#8230;.There were hundreds of Office of Thrift Supervision examiners whose opinions repeatedly proved vastly superior to the economists\u2019 predictions during &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2013\/09\/17\/higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis-naked-capitalism\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Higher Bank Capital Requirements are Necessary but not Sufficient to Prevent the Next Crisis | naked capitalism&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31,34],"tags":[372,1358,1385],"class_list":["post-8446","post","type-post","status-publish","format-standard","hentry","category-the-fed-banks-interest-rates","category-us-canada-countries-regions","tag-bank-supervision","tag-federal-reserve","tag-financial-market-regulators"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Higher Bank Capital Requirements are Necessary but not Sufficient to Prevent the Next Crisis | naked capitalism - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Higher Bank Capital Requirements are Necessary but not Sufficient to Prevent the Next Crisis | naked capitalism - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Bill Black explains why higher capital requirements for banks is only part of the solution. Capital is simply an accounting measure of Assets minus Liabilities and bankers are not above gaming this to their advantage. &#8230;.There were hundreds of Office of Thrift Supervision examiners whose opinions repeatedly proved vastly superior to the economists\u2019 predictions during &hellip; Continue reading &quot;Higher Bank Capital Requirements are Necessary but not Sufficient to Prevent the Next Crisis | naked capitalism&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2013\/09\/17\/higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis-naked-capitalism\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:published_time\" content=\"2013-09-17T07:33:38+00:00\" \/>\n<meta name=\"author\" content=\"ColinTwiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ColinTwiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/09\\\/17\\\/higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis-naked-capitalism\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/09\\\/17\\\/higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis-naked-capitalism\\\/\"},\"author\":{\"name\":\"ColinTwiggs\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/person\\\/cb072791ac83e8bae585007c133d54a5\"},\"headline\":\"Higher Bank Capital Requirements are Necessary but not Sufficient to Prevent the Next Crisis | naked capitalism\",\"datePublished\":\"2013-09-17T07:33:38+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/09\\\/17\\\/higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis-naked-capitalism\\\/\"},\"wordCount\":255,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#organization\"},\"keywords\":[\"bank supervision\",\"Federal Reserve\",\"financial market regulators\"],\"articleSection\":[\"Banks &amp; Interest Rates\",\"US &amp; Canada\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/09\\\/17\\\/higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis-naked-capitalism\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/09\\\/17\\\/higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis-naked-capitalism\\\/\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/09\\\/17\\\/higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis-naked-capitalism\\\/\",\"name\":\"Higher Bank Capital Requirements are Necessary but not Sufficient to Prevent the Next Crisis | naked capitalism - the patient investor\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\"},\"datePublished\":\"2013-09-17T07:33:38+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/09\\\/17\\\/higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis-naked-capitalism\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/09\\\/17\\\/higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis-naked-capitalism\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/09\\\/17\\\/higher-bank-capital-requirements-are-necessary-but-not-sufficient-to-prevent-the-next-crisis-naked-capitalism\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/thepatientinvestor.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Higher Bank Capital Requirements are Necessary but not Sufficient to Prevent the Next Crisis | naked capitalism\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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The AFR reports Smith as saying: It is not just about banks, it is about the real economy \u2013 about corporations, business and individuals... It\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11411,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/12\/08\/murray-has-endorsed-macroprudential-macrobusiness-com-au\/","url_meta":{"origin":8446,"position":3},"title":"Murray has endorsed macroprudential | Macrobusiness.com.au","author":"ColinTwiggs","date":"December 8, 2014","format":false,"excerpt":"Posted by Houses and Holes At 12:52pm on December 8, 2014 Published with permission from Macrobusiness.com.au. From Callam Pickering: The one glaring problem with the Financial System Inquiry is that it didn\u2019t push hard for the introduction of macroprudential policies. That takes the heat off both the RBA and APRA.\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8084,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/10\/basel-committee-willing-to-rethink-complex-bank-rules-ft-com\/","url_meta":{"origin":8446,"position":4},"title":"Basel committee willing to rethink complex bank rules | FT.com","author":"ColinTwiggs","date":"July 10, 2013","format":false,"excerpt":"Brooke Masters reports: The Basel Committee on Banking Supervision said in a discussion paper released on Monday that it shares the concern of critics who believe the main measure of bank safety \u2013 the core tier one capital ratio \u2013 is too complicated and makes it difficult to compare banks.\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10676,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/08\/22\/bank-chiefs-in-last-ditch-plea-to-david-murray-on-tougher-rules-the-australian\/","url_meta":{"origin":8446,"position":5},"title":"Bank chiefs in last-ditch plea to David Murray on tougher rules | The Australian","author":"ColinTwiggs","date":"August 22, 2014","format":false,"excerpt":"From Richard Gluyas at The Australian: THE four major-bank chief executives have each made an eleventh-hour appeal to members of the Murray financial system inquiry ahead of Tuesday\u2019s closing date for final submissions, as concerns mount that the sector could be forced to hold even higher \u00adlevels of bank capital\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/8446","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=8446"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/8446\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=8446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=8446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=8446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}