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Regulatory arbitrage - businesses capitalize on gaps to circumvent the rules - now is "absolutely endemic" and will require other tactics, he warns.

Whereas the agreement Basel III strict regulatory capital buffers is "worth having", the Bank would have liked that it is "more stringent in certain respects", Mr. Tucker said in remarks made in Washington, published yesterday.

The Basel Committee on banking supervision, the body to establish global rules, decided in September more than the dual requirements of own funds for lenders.

"Around the world will now have already groups working on how to"arb"Basel III," said Mr. Tucker."This is part of freedom; it is part of the capitalisme.Mais means that the official community must be rather more agile and avertis.connaissent and alert the streets and roads of our financial markets."

In the past, regulators have missed opportunities to act, Mr. implicit Tucker, call a "crying shame" autour to more activity from the Central Contracting Parties - which reduce the risk of domino insolvency if a party fails - debate is not produced ten years ago.

He said "The reason why it was that nobody is thinking that it was their job to think about it working and they had a responsibility to take a system-wide perspective and really do something".

Looking ahead, he said examination by the Basel Committee requirements of own funds for the positions of the book trade is one of the most important projects of 2011, arguing the need to tackle regulatory arbitrage between "banking book Bank" and his "trading book", which are taken into account in different ways.

Mr. Tucker also stated that the Council G20 financial stability, which is seated, recommend a package for nations G20 addressing the institutions which are deemed too big, too fail.

Resolution - plans measures that can be deployed to provide a "tolerable" course when everything else has no - will be essential.

"Too many countries even does not plan most basic resolution for their domestic commercial banking institutions," said Mr. Tucker. ""Institution in distress is no longer viable and officials are our political leaders with a terrible choice between the chaos of straight liquidation and, Furthermore, support for taxpayer to prevent the implosion of the system.

He added that he was "dangerous nonsense" to think that if a bubble occurs in the credit cycle does nothing regulators can do about it.

"We must be prepared to carry forward punchbowl part gets completely out of control", said Mr. Tucker.

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