Carrying out instructions from the Group of 20 nations, the Basel Committee on Banking Supervision proposed requirements for bank liquidity and reserves. The guidelines, which could be in place by 2012, quickly became known as "Basel III," a clue that they are the Basel Committee's third attempt at saving the banking system from catastrophe. "Alas, the record of bank-capital rules is crushingly bad," according to The Economist. "... Five days before its bankruptcy Lehman Brothers boasted a 'Tier 1' capital ratio of 11%, almost three times the regulatory minimum."
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