By: Bill Blain

In reply to PAUL DANKS.

the is nothing a Regulator can’t regulate to make it worse.
I didn’t mention in the piece, but bad regulation is a factor of the current market: by pushing banks out the risk taking game with higher capital charges and stopping them risk investing Regulators forced risk from transparent banks into less than transparent asset managers. That is where risk resides – risk cannot be destroyed, it can only be transaformed (mitigated) or transferred. That is all that regulators have done, with the side effect of making markets less liquid, less resilient and less robust.