“Assets for which capital requirements were nonexistent, were what had most political support: sovereign credits… A simple ‘leverage ratio’ discouraged holdings of low-return government securities" Paul Volcker
A book to be published by the Voice and Noise Foundation... perhaps.... if it is not taken out first by some powerful oligopolistic interests.
The capital requirements for banks based on perceived risks acts like a hallucinogen in that it increases the sensitivity of the banks to the signals the credit ratings emit.
My handicap methods of giving the good players more strokes while taking these away from the bad players would end golf as we know it, in just a few rounds.