It is not foolproof, but it has fixed Basel II's flaws and reduced the likelihood of cataclysmic events like the global financial crisis recurring
Will the US financial system collapse today, or maybe over the next few days?" asked Paul Krugman exactly 10 years ago. The next day, Lehman Brothers filed for bankruptcy, marking the beginning of the global financial crisis. Was the crisis inevitable? What were the factors that contributed to it? What measures could have prevented, or at least ameliorated, the impact of the crisis? The 10th anniversary of the Lehman collapse is an appropriate occasion to revisit such questions.