“When you treat a sick patient,” says Tom Huertas, “the medicine might not work straight away. But that doesn’t mean it’s not the right treatment.”
“Mr Huertas, formerly a member of the Basel Committee on Banking Supervision and now a partner with EY, is convinced that the regulatory reforms targeting banks since the collapse of Lehman Brothers in 2008 are the right prescription. They include tougher capital and liquidity requirements as well as prospective new rules on winding up broken lenders.‘“/Those big fixes, combined with a more intrusive style of supervision of the banks, and the risks they are taking, should make the system pretty robust,” says Mr Huertas.
But some reformers are not convinced. They insist that many of the changes amount to tinkering with existing rules with an eye on the most recent crisis, while far more should be done to pre-empt the next potential meltdown.‘
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