{"id":384423,"date":"2010-03-03T11:45:03","date_gmt":"2010-03-03T16:45:03","guid":{"rendered":"http:\/\/blogs.wsj.com\/economics\/2010\/03\/03\/regulation-is-risky-says-group-appointed-by-regulated-banks\/"},"modified":"2010-03-03T11:45:03","modified_gmt":"2010-03-03T16:45:03","slug":"regulation-is-risky-says-group-appointed-by-regulated-banks","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/384423","title":{"rendered":"Regulation Is Risky, Says Group Appointed by Regulated Banks"},"content":{"rendered":"

Last year, the Institute of International Finance<\/strong>, a trade association of global banks, put together an all-star group of bankers, hedge fund operators and former government officials to alert us all to \u0093systemic risk\u0094 — the kinds of risk that can sink an economy.<\/p>\n

The banker-appointed group just released its latest warning — and found that new proposals to regulate banks should be one of the global economy\u0092s biggest worries. \u0093Uncertainties about the prospects for reform — which have been highlighted by the recent proliferation of national proposals — are thought by [the group\u0092s] members to pose additional risks to economic recovery,\u0094 said the group headed by Jacques de Larosiere<\/strong>, a former managing director of the International Monetary Fund<\/strong>.<\/p>\n

So which proposals are the IIF and its all-star group, formally called the Market Monitoring Group<\/strong>, really fretting about? The ever-cautious group didn\u0092t name names, though in response to questions, IIF Managing Director Charles Dallara<\/strong>, said that the group had in mind the Obama administration\u0092s proposal to tax banks to pay for the government rescue of the economy and the so-called Volcker rule, which would bar banks from proprietary trading. He also cited proposals by some European officials to regulate rating agencies and CDS markets.<\/p>\n

For some time, bankers have been arguing that uncertainty about regulation is messing up the economy because beleaguered bankers don\u0092t know what to expect out of government. That comment has generally produced derisive howls from U.S. officials, who blame banks and other financial institutions for igniting the crisis that tanked the global economy.<\/p>\n

Mr. Dallara says the IIF and its market monitors aren\u0092t trying to slow or kill regulation. Rather, they think the global regulatory agenda is already overstuffed with efforts to raise capital, reduce leverage and figure out how to handle troubled financial firms. All these efforts are being discussed by the Group of 20 wealthy and developing nations with a deadline of finishing by the end of the year.<\/p>\n

\u0093Any extra layer of uncertainty raises a question of whether we\u0092re serious about international coordination,\u0094 Mr. Dallara said.<\/p>\n

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Last year, the Institute of International Finance, a trade association of global banks, put together an all-star group of bankers, hedge fund operators and former government officials to alert us all to \u0093systemic risk\u0094 — the kinds of risk that can sink an economy. The banker-appointed group just released its latest warning — and found […]<\/p>\n","protected":false},"author":850,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-384423","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/384423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/850"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=384423"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/384423\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=384423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=384423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=384423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}