We have also noted that the rules of Basel I were very complacent regarding these structured investment vehicles or conduits or other off-balance-sheet entities. Basel II rules are fortunately much more stringent in this respect. Had we generalised Basel II earlier, it is likely that we would have fewer of these operations and therefore fewer damages.
Third, the single rulebook would also need to be complemented over time by the common implementation and enforcement of rules as the deeper interconnectedness generated by CMU increases risks of contagion and consequently requires enhanced oversight and supervision of markets and institutions.