Given all the talk about deregulation of US banking, it is worth reflecting on this chart, from a recent presentation by William Coen, Secretary General of the Basel Committee, to students at Harvard Law School, on “The global financial crisis and the future of international standard setting: lessons from the Basel Committee“, Cambridge, United States, 12 December 2016.
Bank failures, government bail-outs and subsequent monetary policy settings have combined to lower overall real GDP.
Actions which weaken supervision, and increase risks of a further collapse need to be seen in this light.
