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“We accept the responsibility to take whatever actions are needed to contribute to stability now and in the future”, IIF Chairman Josef Ackermann said. “Integrity and transparency must be the guideposts for our business and influence all aspects of the ways banks operate.”
Mr Ackermann also called for internationally co-ordinated, consistent approaches to avoid arbitrage between national governments.
The failure of Lehman Brothers and its consequences highlighted how interconnected the global financial system has become and how serious it is when a major investment firm fails, he said.
“Gaps and weaknesses are apparent in a number of regulatory areas, such as U.S. mortgage lending, and we agree that some new modalities for supervision of large, complex international institutions may be needed”, Mr Ackermann said stressing, however, that the focus needs to be on increasing the efficiency of supervision and enhancing international co-ordination and consistency. “In this regard we believe consideration should be given to establishing a global regulatory co-ordinating body”, Ackermann said.