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2 Responses to “Resolving Globally Active, Systemically Important Financial Institutions”
The FDIC and the Bank of England working together on financial regulation is positive. The G-20 should be working closely together generally on this and the EU should be co-ordinating with other G-20 members closely too. One of the main causes of the financial crisis was the ‘race to the bottom’ on financial regulation between London, Newyork and others so a ‘group trek to the top’ is needed.
Reading this paper helps to understand the important role of financial regualtion preventing future crisises in the U.S and U.K. Ireland is a more exaggerated case and should be very interested as an EU member and pushing the EU to work with the UK and US.
The power of the GSIFIs to force governments to do what they want is very large, due to their ‘systemetic’ importance and financial contribution to the economy. The 5 largest donors to Mitt Romneys campaign were all GSIFIs orgainizations. https://www.opensecrets.org/pres12/contrib.php?id=N00000286
This power needs to be balanced by a strong global regulator, meaning co-operation between all G-20 countries.
read it too,interesting paper there was extensive and good reporting in the “Bloomberg Times’ sorry FT on Monday.
New sheriff in town……..fair play to the CB for releasing this speech in a timely manner,Oakes speech available too.