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Regulatory reform “should be guided by the principles of greater co-ordination, consistency and efficiency”, the IIF said in its letter to President Bush ahead of the G20 meeting in
“It is imperative that regulatory and supervisory structures built on national platforms be more fully integrated and co-ordinated within a global framework”, the IIF states.
“Markets and firms are now globalized, and - in important respects - so must be regulatory standards”, the letter said. “The proposals for ‘colleges of supervisors’ for the top 30-40 global financial services institutions are well taken.”
The IIF also stated that the private sector takes responsibility for the shortcomings in the risk management of financial institutions that the crisis has exposed.
It is crucial for policymakers to take additional co-ordinated steps to foster recovery in financial markets and to avert a severe global recession," the IIF's letter said
Managing Director Charles Dallara warned that any takeovers must be "temporary," and that governments must sell their stakes as soon as the situation has been stabilised. A guiding principle to be agreed by the summit, said the IIF, should be that financial systems should be restored to a private sector footing, on a competitive market basis, as soon as circumstances allow.
IIF letter attached below