Bit by bit, bank regulators are realizing that risk reduction – worthy though it is – isn’t without risk all its own. In 2011, we issued a white paper laying out problems compounding as the post-crisis framework took shape. Now, this concern is worsened as geopolitical crises, accommodative monetary policy, and the slow, hard recovery realign financial markets.  This doesn’t mean that any of the new rules is wrong, but it’s increasingly clear that all of them taken all together have unintended consequences. 

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