3 tweets that should rock the world of bank regulators, and one day will
Motorcycles are riskier than cars, so if they have a choice, people prefer cars; so more die in car accidents than in motorcycle ones
Below BB- rated are much riskier than AAAs, so bankers much prefer AAAs, so big crises happens with AAAs turned risky, not with below BB-
Our bank regulators never understood that, and assigned 20% risk weight to AAAs and 150% to below BB-s So now what? http://bit.ly/1TgB6EJ
Regulators and bankers looking out for the same risks