New Basel III regulations were supposed to force global banks to hold enough cash and highly liquid assets to prevent the kind of financial crisis that spun out in 2008. But it has not worked out that way. The banks, by pressuring officials negotiating the standards on behalf of their countries, have watered down the rules so much they offer little if any new protection, says Wharton finance professor Richard J. Herring, in this Knowledge at Wharton interview.

For more from this interview with professor Herring, see:

The Global Bank Regulatory System Remains Crippled
Show Me the Money