Tuesday, February 03, 2009

Financial rules 'worsened crisis'


HSBC chairman Stephen Green has said that the current financial rules must be "fundamentally revised" as they had deepened the financial crisis.

The rules, such as capital adequacy regulations and fair value accounting, were "well intentioned", but had proved to be inadequate, he said.

Some say that these rules encourage banks to build up their capital instead of lend money to their customers.

See full Article.