This hard hitting article by Mayra Rodriguez Valladares in the American Banker starts with a question: "How do you get 27 countries with different cultures and political systems, often at different points of the credit cycle, to agree on a reform plan for the global financial system?' Answer: 'By watering it down."

Mayra takes the recent weakening of the Basle III apart and concludes that: "With every part of Basel III that is gutted, we are increasingly back where we were at the eve of the crisis." She finishes with the observation that in today's financial world, regulators pretend to supervise while banks pretend to be liquid.

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Assessing and managing bank counter-party risk will remain a vital task for corporate treasurers for many years to come.