New bank regulations coming out of Basel III “almost certainly” will not prevent another global financial crisis, similar to the one the world is still recovering from, says Richard J. Herring, Wharton finance professor. In this Knowledge at Wharton interview, he notes we are “kind of fooling ourselves to have something out there that we think is going to be a protection but really does not afford much of a buffer at all.” Herring also is a co-chair of the Shadow Financial Regulatory Committee, an unofficial group of former regulators, lawyers and academics who review ideas for new regulations and other financial proposals.

For more from this interview with professor Herring, see:

Big Banks Keep Watering Down Global Reserve Rules

Show Me the Money