Calls grow for scrapping of Basel II accord

Industry figures argue that the capital adequacy regime is not relevant in today's economic climate, and that regulators have already abandoned certain aspects of the accord on the quiet

The opponents of the Basel II capital adequacy accord received a boost last November when veteran financier George Soros told a congressional committee meeting in Washington, DC that "Basel II was an aberration and has to be abandoned." Soros's remarks have joined those of other industry figures who argue that the capital adequacy project is not relevant in today's banking market. In particular, the decision by governments across the globe to inject capital into banks arguably calls into