US Treasury official Mark Sobel highlighted the Role of US-EU Co-operation
07 July 2009
“The US and the EU will have critical roles to play in striking the right balance between promoting sound regulation and preserving market dynamism, while ensuring that their actions are firmly anchored in the global system.”
Mr Sobel focused on the role of US-EU Co-operation and highlighted that the “momentum” must be maintain once the crisis will be over. The following areas were the EU and US must work together are:
- Convergence of the FASB and IASB. The goal of a single set of high quality global accounting standards is a key issue.
- Credit rating agencies must be subjected to a more rigorous supervisory regime, consistent with the IOSCO Code of Conduct.
- Hedge funds, must be registered and make sure they are not posing a threat to financial stability, while letting them pursue global strategies on the basis of sound management practices. We should deal with the differences in the business models of hedge funds and private equity.
- Achieve comprehensive reform of OTC derivatives, while respecting the work to achieve greater integration of global payments systems.
- Address trans-Atlantic concerns over the operation of globally active insurance firms.
- Strengthen supervisory cooperation, in part by facilitating cross-border crisis management arrangements and resolution mechanisms.
“I can assure you that the proposed U.S. regulatory reform has international co-operation at its heart and we remain committed to working bilaterally with the EU and multilaterally through the G-20, FSB, and standard setting bodies to advance our shared agenda”, he concluded.
© US Treasury
