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Commissioner McCreevy outlined the measures to be taken urgently to overcome the financial crises. Light touch regulation and self regulation did not work, the Commissioner said in a speech held in
To find a way out the Commissioner proposed several issues needed, including:
Ø a global accounting standard setter with 21st century standards of governance.
Ø quick adoption of the CRD and Solvency II directives.
Ø a roadmap on how the risks from credit derivatives can be mitigated.
Ø abolition of perverse incentives stemming from executive compensation schemes.
Ø adoption of Commission proposals on securitization.
Ø tackle the conflicts of interest within rating agencies.
Ø better oversight and crisis management mechanisms.
Ø much greater international co-operation.