"Substantial flaws still remain" in Basel II, says CSFB's Ervin

Ervin raised four “macro” criticisms of the proposed Basel II rules. First, he said the new rules were “too complex, too costly, and too inflexible to provide a robust, durable framework for bank supervision going forward”. He warned that a side-effect of the proposals could be the “effect of freezing the development of good risk management, and locking it into an ‘early 2000’s’ mindset”. The hearings were before the Subcommittee on Domestic and International Monetary Policy, Trade, and Tech

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