In a Wall Street Journal interview, Adair Turner, chairman of the UK Financial Services Authority, discussed everything from asset bubbles to the Basel II capital-adequacy rules. Turner said not enough attention was paid to liquidity during the past 15 years. "Enormous intellectual effort went into the design of the Basel II capital-adequacy regime. And very little attention went into liquidity," he said. While Turner does not think there are asset bubbles to worry about in Europe or the US, he said, Asia might have some issues.

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