Basel XXIV

Basel I: no good

Basel II: still no good

Basel III: not even close

Basel ....

Basel ....

Basel XXIV: Today the Financial Commonwealth of Nations (or FCN), the supranational financial board, instigated after the melt-down financial crisis of 2012, but in their existance handicapped during nearly 2 decades of quarrels between the vast majority of member nations of the western World (including China, Japan and Thailand), arrived at a major break-through-solution to the dire straits of global financial health. The compromise reached has promise of world peace and global control over financial megastructures that were shown to be deteriorating since 2008.

The main substance of the agreement reached seems to be the following (mind you, this is breaking news and has yet to be analysed by minds greater than what we here, at KXAWNLP headquarters are able to understand).

• Banks and ALL other financial firms, hereafter defined as 'banks', are allowed to lend as much as their equity position allowes. No Yuan-cent more. Breaking this rule forfeits all salaries, premiums, allotted pensions and bonuses of all persons with primary, secondary and tertiary responsabilities within the bank, starting with the first year of their employment. Every bank employee forfeits his/hers personal wealth, including their spouses and children's wealth, up to the third degree of inheritance and including family or friendly bonds, trusts, legal contracts and otherwise that try to obtain the opposite, these being nullified at the moment of their arraignment.
• Banks are allowed NOTHING in financial terms, unless specifically ordained and/or agreed upon by the FCN. Breaking this rule immediately leads to the bank's bankruptcy, where all personal wealth, as described above, will be confiscated, starting from their maximum financial wealth from 0-2 years before the committed rule-breaking act(s). Shareholders will immediately lose their shares/promised shares, open positions in whatever direction regarding the bank's history, present and future. All shareholders will be held equally responsible for the illegal acts of the accused banks. These responsabilities will not differ from the positions of the bank's employees as stipulated in the former (1st) article>
• Banks will always and without any delay repay their clients' losses as a result of ICT-related problems and misdemeanors. In no way will the bank's clients suffer any loss that is not their responsability, to be proven by the bank. Losses of this nature will directly be accounted as shareholders losses (dividends and alike) or (which is the same) be at the expense of the bank's equity.
• Banks must sell their business at nominal share value to any bidder, public or private, at the loss of the bank's shareholders, senior, middle and lower management and (hired) consultants, whenever breaches of the Basel XXIV rules have been put forward in a court of law, where banks have to prove, beyond a shadow of a doubt, that they were not to blame.
• Banks may not operate -directly or indirectly- in countries that have not sworn allegence to the FCN's charter.
• Risk characteristics of banks' products will only be accepted after final scrutiny by the FCN board. If, after a period of 10 years has elapsed, the risk characteristics of any bank product shows incorrect risk realisations, the bank will be fully responsible.
• Any bank will be responsible for cash transactions by their clients. If, in any court, evidence of uncertainty regarding these cash transactions is shown, the bank is responsible for paying back the amounts under legal scrutiny, at the expense of the bank's equity.
• Bank mergers are never allowed. Bank growth is only defined in terms of internal growth (at the expense of their less-efficient, less-performing or in quality-terms less successful competitors).
• To be continued (we had to stop here because our news deadline is 2 minutes away.

Question: in what year will Basel XXIV become operational?