But I think you err in insisting “this process needs to be WTO-compliant.”

As I blog about over at http://www.EyesOnTrade.Org, all the existing and proposed WTO disciplines on such domestic regulations are going in the opposite direction to what you propose.

We should try to walk and chew gum at the same time: pushing for higher U.S. capital requirements, while simultaneously pushing WTO reform. If we don’t do both, the WTO will come to bite us later.

Full post here: http://citizen.typepad.com/eyesontrade/2009/09/g20-summit-yes-actually-dangerous.html

Again careful with whom you ask about capital risk ratios… most probably they will not know enough what they are talking about.

On Lehman again, here you find some figures:
http://www.google.ca/finance?q=OTC:LEHMQ&fstype=ii

But as the general principle behind higher capital costs and requiring long term compensation schedules, you raise very good points here. Per K. commented that 11.6% tier one capital was its _effective_ capital after adjustment for debt rating. I admit to being slow in following this data – do you have any more information on this, or was 11.6% really it’s raw capital asset ratio?

How many paid staff employees (at whichever levels) will step up and say financial markets are corrupted? How many of them would step up and write it? how many within organizations will step up against foolish CEO s strategy?
The main public perception is a mitigated knowledge of the situation, never to be enriched by the financial press.
After all J dos Pasos wrote of course CPI obliges, one should read billionaire.
That was banality untill nowadays when the legacy has become the real world financial burden, when the economic future is impaired by a collective financial robbery having discounted the long term future.
Bloggs are supplementing information defisciency,anonymity is not a lack of bravado,but the wish to be read for the substance in total abstract of recommendation ,professional or educational.
Will you one day try to measure the positve contribution of the economics bloggs if only for offering alternative thinking? or just merely secretely aknowledge that shadow economics and illusionary financial power have produced unforeseen mutants?

And for the umpteenth time Simon Johnson displays his absolute ignorance on what the Basel risk-weighted capital ratios mean.

Before the Basel era the capital ratios of banks were obtained by dividing capital by “total bank assets”. Now with Basel, the capital ratios are the result of capital divided by “total risk-weighted bank assets” and so we are NOT talking about the same figures.

If Lehman had only had a traditional 11.6% tier one capital ratio most probably everything would be just fine. The problem is that since the real denominator was so much higher that the “risk-adjusted” denominator the real ratio was so much lower in fact total capital to total traditional assets of Lehman, on May 31, 2008 was below 4.3%. http://www.google.ca/finance?q=OTC:LEHMQ&fstype=ii

Let me explain to Simon once again some basic facts of life. If the risk-weights used when weighing risk are wrong, then the result means zilch!

Something about, “Why not take them, bend over, feel around, and when you’ve got the right spot, stick ‘em where the moon don’t shine”, you didn’t understand, chief? Tell you what, then, try this approach instead: Draw a tub of hot water and set out in search of a razor blade. Don’t take too long, now. :-)

Now have we offended your very delicate and carefully nurtured sensibilities, anonymous? Why not take them, bend over, feel around, and when you’ve got the right spot, stick ‘em where the moon don’t shine.

“language matters: it’s a short step from dehumanizing your opponents to bombing them”

“Take you PC and your counting to ten, bend over, feel around and when you’ve got the right spot, stick ‘em both where the moon don’t shine.”

“Draw a tub of hot water and set out in search of a razor blade. Don’t take too long, now. :-)”

Oh, goodness, son, no defense was ever purposed here. Just a little help for the slow-witted, that’s all. And since you would seem to have a rather considerable fascination with grammar, so you won’t again appear the schlemeil, you may want to look into the rules governing the use of capitals when multiple sentences follow a colon. :-)

By the way, did you take my suggestion about bending over and feeling around for the sweet spot? I wouldn’t think so. That method usually is curative and, sadly, you give us no evidence whatsoever of a cure. Tell you what, try this approach instead: Draw a tub of hot water and set out in search of a razor blade. Don’t take too long, now. :-)

It’s a racist insult, whatever you thought you were saying. Hey, novel approach: why don’t you just say you’re sorry, you didn’t mean it that way?