Spreading fear


The financial crisis has laid bare many of the flaws, inconsistencies and anomalies in the regulatory framework. Supervisors have already been forced to make changes to Basel II, publishing new rules on trading book capital, liquidity risk and stress testing - with further guidelines on capital buffers, leverage ratios and pro-cyclicality in the offing. The accounting standards boards have not escaped scrutiny of their rules either. Both the International Accounting Standards Board (IASB) and

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