Poor John Carney. He thinks new international banking regulations are ripe for regulatory arbitrage. No sh$t Sherlock. Almost all regulations are. Why do you think regulators know how to run banks better than bankers themselves? Regulators are central planners.

It’s eye opening to reflect that the Basel III requirements are the joint production of more than 500 representatives from 27 nations, including top regulators and central bankers. They met dozens of times this past year. They produced 440 pages of new rules.

But those rules are just as open to regulatory arbitrgage—a fancy phrase for gaming the system—as ever.