Jake's View | The only sound financial system is one that can't be rescued

There used to be a time when Canadians went to London to make fools of themselves by owning newspapers (Max Aitken, Roy Thomson, Conrad Black). Times have changed. Mark Carney is now out to do it at the Bank of England instead of at a newspaper.

Let's start with the notion that you can make investors, rather than the general public, bear the cost of equipping banks with armour plate weighing a fifth of their balance sheets.

That is what is meant here by "issue liabilities". The bank's shareholders must themselves put up a dollar for every four dollars of the public's money they have at work. This is about twice the present world average.