Charles

1) NO. Following the principle enunciated above/elsewhere (Leo I think) keep the regulation as low on the food chain as possible. I see nothing wrong with individual banks/countries setting that cap. I think it should be advertised or somehow integrated into the ratings system so customers – institutional and individual can make an informed banking decision.

2) NO. Possibly sufficient, but unnecessary if the various mortgage derivatives are allowed to flow freely – with full transparency – again to allow informed decision-making. One of the reasons the various governments couldn’t get the large pools of private capital back into the system in Sept/Oct was the lack of transparency – I call it the Black (sc)Holes Effect.