The real impact of the new package of Basel agreements is not what they do. It actually isn’t all that much and that which would make a difference won’t happen for a decade, if ever. What matters is that global regulators and central bankers recognized the hard reality facing them since at least 2013: global financial practices and national objectives differ so much that the only way to salvage a trans-national framework is to establish the equivalent of a demilitarized zone. With the pretense of peace thus established, each side goes about banking as it thinks best although the facade of a global accord is preserved to prevent a resumption of full-fledged competitive warfare based on home-country regulatory arbitrage. We will shortly provide clients with in-depth analyses of all of Basel’s actions along with IAIS’s important new consultation on systemic insurance regulation. However, as I’ll discuss here, the real action lies now not in complying with these rules, but in designing the national standards that fit on either side of Basel’s DMZ.