“Yet again, the Basle Committee has demonstrated how it is practically impossible to reform the financial sector given diverging interests from the different governments, regulators and bankers. The whole purpose of LCR is for banks to demonstrate that they have enough unencumbered, high-quality and liquid assets to help them in a time of real stress. Allowing RMBS, equities and corporate bonds even with a haircut only helps continue the pretence. A major part of Basle III is to include requirements that were not part of Basle II that really led to the crisis: lack of liquidity as well as excessive leverage.”