The Meaning of Basel: Cohen, Spillenkothen, Stiglitz Speak Out
This article is for subscribers only.
The Basel financial regulators’ decision to more than double bank capital requirements worldwide -- while allowing eight years to comply -- triggered conflicting responses among experts ranging from Nobel laureate Joseph E. Stiglitz to Wall Street lawyer H. Rodgin Cohen.
Stiglitz, 67, said the “unconscionable” delay will expose the public to risk, while Cohen, 66, predicted the market may “penalize immediately” lenders that currently fall short. Paul Miller, 49, a former bank examiner who is now an analyst at FBR Capital Markets Corp., called the new rules “easy” and predicted they won’t prompt capital-raising by any big U.S. firms.