Dabblings & Diatribes

It sounds as though Hans Hoogervorst may have had an epiphany last night. Hoogervorst is the current IASB chairman. He explained his latest findings to the Basel Committee in Brussels:

It’s “extremely risky to have a capital regime which says for certain types of assets you don’t need to put aside any capital..."

It is very encouraging to see these important issues being addressed by international accounting standard setters. Perhaps next week we will learn whether there are any risks attached to derivatives and exchange-traded funds. Stay tuned...