- Regulatory efforts to clean up global banks must
work within the current system and not seek to break up good
banks from bad;
- While the causes of the financial crisis in the
US and Europe were similar, each requires different solutions
for past mistakes;
- The establishment of an EU banking union will
form a critical part of the survival of the euro itself. But
many hurdles stand in the way.
Regulatory efforts to clean up global banks must work within
the current system and not seek to break up good banks from
bad, industry leaders warned yesterday.
The global financial crisis highlighted a worldwide trend
towards corporate mismanagement and reckless risk-taking in
financial services organisations, as well a dearth of effective
regulation to tackle such behaviour. Global
policymakers’ attempts to provide greater
transparency, more consumer protection and reduce
banks’ risk appetite have since focused on
separating banks’ trading activities from...