Abolishing the trading book will not solve capitalisation
problems, as proposed by the UK Financial Services Authority
(FSA) in its discussion paper on the prudential regime for
Some believe the reform, one of four options put forward in
the DP 10/4 report, is a drastic and misguided measure which
outweighs the regimes shortfalls.
Is the regime so dramatically flawed? I doubt
it, said Barney Reynolds, head of the financial
regulatory group at Shearman & Sterling in London.
Its pretty radical to tear it up.
The report suggests...