Pollution controls November 16, 2012 at 10:28 pm
I’m not sure I entirely agree with Golem XIV, but I have to say that the guy has a nice turn of phrase. Consider this:
Risk is the pollution created by the process of making money.
He also picks up on something from Basel that I had missed, a note from the March quarterly on European bank funding and deleveraging. That points out just how few assets are being sold by banks despite capital ratio pressure:
The plans banks submitted to regulators in January 2012 suggest that the shedding of bank assets will play a small part in reaching the target ratio… The EBA’s first assessment shows that banks intend to cover 96% of their original shortfalls by direct capital measures