Commissioner McCreevy focused on the current financial turmoil, sovereign wealth funds, and forthcoming issues as mutual recognition in the field of securities and insurance.
Commenting on the recent financial turmoil McCreevy called for cooperation addressing liquidity issues in interbank markets, strengthening prudential requirements or risk management, and to develop early warning and crisis management tools at global level.
“Several major financial institutions have been recapitalised, not to say rescued, by sovereign wealth funds”, McCreevy said and underlined their role when providing liquidity when access to more traditional sources of capital is severely curtailed. “I welcome these new sources of liquidity and investment”, he said. “This might make me unpopular with some elements here and in Europe, but I mean what I say.”
The Commissioner also welcomed the idea of mutual recognition in the field of securities
“If we can get the conditions right, the rewards could be immense”, he said. “This would also be for me a much needed show of confidence and would help to restore trust in the markets.”
Turning to insurance McCreevy was disappointed with the experience in dealing with the current state-based insurance system in the US. “It has been desperately disappointing to see the US so protectionist at the State level”, he said. “The system for getting standards agreed and adopted in the US as a whole currently remains unsatisfactory”.
Full speech
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