Corrigan report
The report recommends that changes to regulation should be principles-based. Sounds good on paper but let's remember that Basel II Pillar 2 (the section focusing on risk governance, stress testing, scenario analysis and liquidity risk) is already principles-based. You might argue that the principles weren't implemented in the right way but that sounds a little indistinct. Subprime shows that the principles-based approach has its limitations and there might be a need to strike the right balance between its flexibility with the need for some rules-based requirements.
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