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A UniCredit bank branch in Rome November 10, 2011. (TONY GENTILE/REUTERS)
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EU regulators must measure risk with same yardstick
Basel has examined bank capital ratios, and found twice as much fiddling. The first of two key studies by the global watchdog confirms what many investors have long suspected: lenders reach vastly different conclusions about the riskiness of the same portfolio of trading assets. But Basel has also found that supervisors differ in their conservatism, too. To restore faith in bank capital, both will have to be brought into line.