The UK regulator, FSA, appears to be coming back to their senses. Today an actuarial professional who works for a retail bank, has written to the author of this blog:
"I attended a presentation on liquidity from a senior figure in my banks Treasury department - the FSA are proposing a ratio which would in effect mean LTD < 100%."
On one side it is good news, but on the other it is worrying: even if FSA do something right they do not really understand what they are doing. But it is a progress from much-celebrated "Turner Review".