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Opalesque Exclusive: Financial Stability Forum releases recommendations to achieve increased global market resilience
From Kirsten Bischoff, New York: In October 2007 G7 finance leaders requested that the Financial Stability Forum (FSF) compile a report on the turmoil in the world markets. This weekend, Mario Draghi, Chairman of the FSF, Timothy Geithner, President of the Federal Reserve Bank of New York, Donald Kohn, Vice Chairman of the Federal Reserve Board, Nout Wellink, Chairman of the Basel Committee on Banking Supervision, and Svein Andresen, Secretary General of the FSF were all in Washington DC to release their report, provide a united front, and try to restore confidence in the global markets.
The report points out that although governments have taken steps to adjust and dampen the impact of the market turmoil on the economy, there remains an inordinate amount of stress on the financial system. It also refers to the current, ongoing weakness in the markets referring to continued deleveraging, and the specific possibility of hedge fund losses yet to be realized, stating, “At present, eight months after the turmoil broke out, de-leveraging continues to pose significant challenges…Although some financial institutions have moved to replenish capital the system is burdened by market uncertainties about the health of key financial institutions, about the large overhang of assets held by banks, SIVs, hedge fund...................... To view our full article Click here
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