The Globe & Mail reports the financial leaders met in Washington to draw up recommendations that seemed pretty basic such as have a risk committee that understands the parameters of acceptable risk.
"Another point that rather floored me," said Jacoline Loewen, author of Money Magnet, was to do your due diligence. I guess with these "pass the parcel" debt structures which sent off the loans to other financial institutions, employees got lax because they didn't think the parcel would land back in their lap and blow up.
I am glad to see that business is getting ahead of the regulators because Sar-Ox has meant that the New York Stock Exchange plummeted in IPOs listings while London's AIM rocketed. Here's more:
Although some have interpreted the report as a pre-emptive move to avoid the burden of more regulation, he IIF was quick to insist that this was not an effort in self-policing, and promised to work with regulators on new rules to benefit the industry.
But there are limits to what central banks and market officials can do, Mr. Waugh said in an interview. “Prescribed regulation hasn't been very successful in averting crises and probably never will be.”