Hence, these banks already employ sophisticated risk-management practices and internal economic capital models. I fully support our proposal to review carefully these practices and models, among other factors, before granting the required supervisory approval for individual banks to use the advanced approaches of Basel II. Determining the right level of complexity for U.S. Basel II rules remains an issue.
Their activities were spread all over the world, while the risks and rules varied from one country to another. The big picture was therefore often lost. At the same time, the benefits of diversifying their activities in these different ways and at these different locations have proved disappointing.