Highlights from Redesigning Financial Regulation panel

Sat Jan 30, 2010 8:38am EST
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DAVOS, Switzerland (Reuters) - Following are highlights from the Redesigning Financial Regulation panel at the World Economic Forum in the Swiss resort of Davos on Saturday.

JEAN-CLAUDE TRICHET, PRESIDENT, EUROPEAN CENTRAL BANK "We're bound to improve considerably regulation. We're bound to make the financial system much more resilient than before because we cannot afford to have a financial system as fragile as before.

"The fact that we must have global rules is absolutely essential.

"If failures appear avoidable, we need living wills or resolution then we have enormous work to do as regards to cross border institutions. We have to strengthen infrastructure in order to minimize the fallout of a collapse. It is very complex and multi-dimensional and we have to work a lot."

"The case of Europe is particular one -- we have a single market, the European Union, and national supervision. A large set of reforms is underway in Europe which would permit to have much better coordination among supervisors than existed before. It's the first lesson drawn from the crisis on an institutional level."


"The question for me is whether constituencies that are large banks have sufficiently reflected upon their business models, mindsets in order to ... proactively lead their businesses to new business models. Are we hoping after the crisis, we can go back to the old normal?"

"Regulation for what? Regulation is to repair the past and marginally improve the past, and we don't think we're doing ourselves much good. All banks are not the same. In formulating new regulations, in may developing countries it wasn't a financial system crisis. Ordinary people faced the impact of failures of financial system."