And so the global banking rules have been shaken up with Basel III requiring the banks to have higher capital reserves, more in the kitty as it were, to prevent another financial meltdown. But the problem is whether it goes far enough, and whether it will actually do anything to stop the next crisis.
For a start, the changes do nothing to address the shadow banking system of derivatives and transactions that created the crisis in the first place. Commentators say you would have to be naïve to assume that enterprising financial engineers won't be getting up to these sorts of shenanigans.
As Lex in the Financial Times points out, "the reality is that a Basel III world will not look hugely different to the one from which the last crisis sprang." Don't believe the spin.
All this comes down to politics and the power of the banks. The only way to resolve the problem next time is simply to let them fail and not have taxpayers bail them out. The problem is that the banks won't sit back and let that happen and unless political leaders see that, we can expect another crisis.
no comment untill now