Op-Eds
Published in the Financial Post on October 29, 2010
By Clyde Goodlet
The upcoming G20 meeting in Seoul is expected to address the amount of capital that banks – specifically large banks deemed "too big to fail" -- must set aside to support the various risks they manage.
The source of this issue is the oversight body called the Basel Committee on Banking Supervision, which last month floated changes to the requirements for banks. This marks the third time in the past two decades that the Basel Committee has addressed capital requirements and, unfortunately, this latest attempt is unlikely to be any more successful than previous ones.
While requiring additional capital to support risk in a bank's…