"We simply cannot return to business as usual." These were the words of President Barack Obama, on January 21 2010, in his statement on proposing new limits on financial risk-taking. The global banking industry was thrown into turmoil by his proposals, which proposed the most far-reaching overhaul of Wall Street since the 1930s.
Clearly, therefore, the financial markets are still in a state of considerable transition. So, where do we stand, and how will Asia look in 12 months from now?
Counterparty risk
I wish to look at that question in the context of structured products, since this is one area that has been seen to be at the heart of the financial crisis. One of the main themes of the past 18 months has been counterparty risk management – how can institutions and individuals manage their risk exposure more effectively? What infrastructure should assist this? Whose responsibility is this infrastructure?...