The Australian’s Adam Creighton has written a ripper article today on the damage caused by the Basel capital adequacy accord, which Creighton argues has sown the seeds of financial crises across the globe:
During the Basel Committee’s almost 30 years of deliberation — the first version of the Basel rules emerged in 1988 — the frequency and severity of financial crises have increased significantly, in advanced and developing countries alike. It’s caused huge damage not only to the reputation of the banking system in general, but to advanced countries’ economic systems in particular, which are continuing to adjust…
