Restoring Confidence: Where the Global Banking System Went Wrong and How to Put it Right

Restoring Confidence is a ground-breaking book in which a top mathematician and an experienced City banker explore how confidence in the global financial system has been destroyed by the current banking crisis. Drawing on first hand experience, Sean Tully and Richard Bassett analyse the steps which led up to the crisis and pinpoint the main causes of the lending bubble with whose consequences we are all now living today. The authors will explain the intricacies of the regulatory framework of Basel I and Basel II, the two landmark events in banking regulation which ironically laid the foundation for the current crisis.The authors will then show how a radical and new but easily understood measure of risk, revealed here for the first time, can prevent another such bubble from ever happening again. Armed with this system, investors, rating agencies and regulators alike can cut through the complexity of economic modeling to the nub of the problem: leverage.