New financial regulations will harm households and small businesses

The financial sector breathed a sigh of relief this week as the Basel Committee’s recommendations for new rules on banking regulations were announced; stock markets around the world rallied. Rules on the amount of capital banks must hold to cover risk – and the extent to which reserves must be liquid – are less stringent than expected.

Should the left be annoyed? Shouldn’t the banks be hit harder for causing the recession and compelling taxpayers to bail them out on a massive scale?

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Image: Peter Pearson