Article in the FT today by Lasse Pedersen and Nouriel Roubini (somewhat accurate predictor of some of our current problems) on regulatory captical and prevention of another crisis. Pedersen and Roubini say that current regulation focuses too much on individual bank risk and does not consider the systematic risk that could be caused by the failure of an individual bank. They propose the introduction of a new systemic capital requirement and systemic insurance programme, although in this article do not present too much detail on the mechanics of the “systemic risk” calculation. More detail can be found at their NYU Stern project on restoring financial stability.