SNB's Hildebrand and Italy's Saccomanni on crisis

The crisis has shown central bankers and regulators rightly predicted that highly-leveraged institutions presented a threat to stability. But officials' attentions were directed at the wrong type of institution, admitted Philipp Hildebrand, a governor of the Swiss National Bank, who added that Basel II should be changed.

At an event at the London School of Economics on Tuesday, Hildebrand noted that many officials were expecting the failure of highly-leveraged institutions, but that they were