Frantic Rule-Writing Won’t Avert New Banking Crisis

July 17 (Bloomberg) -- Five years after the great financialmeltdown, have the U.S. and other advanced economies done enoughto head off the next calamity? The short answer is no.

There’s been frantic activity, all right. Heroic feats oflegislation and rule-writing will keep regulators, complianceofficers and analysts busy for years. But the gain in safetyfrom all this is likely to be small -- too small, probably, evento offset the danger created since the crash by greaterconcentration in the finance industry. Once the residual fearfrom the last crisis fades and the appetite for risk revives,financial systems might be more at risk than before, not less.