notices - See details
Notices
V
Vipin (not verified)
19th September 2013 | 7:31pm

Christine - Those limits existed in the past although they were probably not breached in this case and many other cases as they were not calibrated appropriately. Which is another reason why Regulators inc. Basel, Fed etc. have prescribed more stringent limits on risk and leverage at regulated financial institutions like banks through various rules. The issue now is related to monitoring the compliance and preventing regulatory arbitrage given global differences in rules.