And do not the poor and the developing world, where most of the “perceived risks” tend to live, also have an equal right to ask for “long-term value creation”, not excessive risk-aversion, as that which is present in the current Basel capital requirements for banks?
2nd comment: The G20 draft said it supported the introduction of a leverage ratio as an additional measure to the Basel II capital framework and that all major G20 capital centers committed to adopt that framework by 2011.
The introduction of a leverage ratio as an additional measure does not, on the margin, diminish any of the arbitrary risk averseness introduced by Basel II and that creates additional costs for the financing of all perceived as risky, and that are layered on top of the risk spreads already charged by the markets on perceived risks.
This amounts to an outright discrimination of development and an outright indirect subsidy to what has already been developed. This is simply shameful!