Basel2 doesn't mean not taking risks. Basel2 means proving to auditors that you have enough money in reserve if you lose on your gamble. It prevents banks sayin

Basel2 doesn't mean not taking risks. Basel2 means proving to auditors that you have enough money in reserve if you lose on your gamble. It prevents banks saying "all in on red!", then losing all their money, then going "uhm taxpayers pls bail us out now". And from the article you linked: > "I believe in higher capital requirements for banks." That's exactly what Basel2 is. I know there is a subset of HN who will kneejerk against any regulations, but I really can't understand why anyone would be against enforcing fiscal responsibility on our core banking systems. Especially given the massive social and taxpayer impact if the banks are irresponsible. Oh and one last thing... Basel2 is 100% voluntary in Oz. You can choose not to comply, but then you need to hold a higher capital reserve.