Basel III Gutted, Delayed As Even Existing Regulatory Regime Too Burdensome.....

Zero Hedge ^ | 07/27/10 | Tyler Durden

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Basel III Gutted, Delayed As Even Existing Regulatory Regime Too Burdensome For An Insolvent Banking Industry

Tyler Durden on 07/27/2010 03:56 -0500

In light of recent bombastic statements by priests of Keynesian fundamentalism that European banking is one big, non-dysfunctional, even healthy family, it would have been the logical thing that the Basel Committee on Banking Supervision would if not tighten terms on proposed Basel III implementation, then at least keep them as is. Why is why news that the recently proposed adjustments to Basel III which not only delayed implementation of the "regulatory" framework by many years, allowing banks sufficient time to blow themselves up under the current regime, but also to soften liquidity requirements of all global banks, is merely an indication that global regulators realize that the last free for all, in which every bank is allowed to steal as much as it possibly can before all hell breaks loose, in many times with as little as a penny in the mythical risk reserve concept known as Tier 1 Capital, levered a few hundred billion times, is finally here. And yes, aside from the fact that even the existing massively lax regulatory rules of Basel II need to be toned down is irrelevant: all European banks are healthy dammit, and just like in the US, bank failures will continue until credibility returns.

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