Professor Edward Kane:

The politics is so strong today that it will take a long time and maybe another crisis or two to really change things in Europe and the United States. They are going to be under-regulated and Basel III and the complexity is all part of the under-regulation. It looks like it is terribly high, when they talk about 16% equity ratios risk-based but the risk weight has already come down to half so they are really talking about 8% and many other industries that are not supported by the government hold much more than 8% stockholder equity capital.