The Vickers Commission’s failure

Laurence J. Kotlikoff 26 October 2012

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The UK is still reeling from the great financial crash. Real GDP remains below its 2007 level, the nation’s 8.4% unemployment rate is at a 16-year high, and youth unemployment is over 20% (BBC 2012). Over three million UK citizens can’t find work or have given up looking. Millions more are short on work – working part time or in jobs below, if not far below, their skill levels.

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Topics:  International finance Macroeconomic policy

Tags:  UK, financial regulation, banking sector, Vickers Commission

Ring-fencing is good, but no panacea

Viral Acharya 25 October 2011

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The recent report issued by the UK's Independent Commission on Banking, chaired by Sir John Vickers, provided recommendations on capital requirements and contained a proposal to ring‑fence banks – in particular, their retail versus investment activities. I view ring-fencing as potentially useful but argue that the more important question is whether the risk weights in current Basel capital requirements are appropriate.

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Topics:  Financial markets International finance

Tags:  bank capital regulation, capital requirements, Vickers Commission, ring-fencing, risk weights

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