By Michael Pomerleano
Josef Ackermann, Deutsche Bank chief executive and chairman of the Institute of International Finance, wrote last month in the FT: “There is a danger that changes in the regulatory environment will, by accident or design, lead to a refragmentation of markets…Consequently, we should not seek answers in the perceived safety of nation-based structures, but rather establish effective processes for cross-border crisis management”.
According to Mr Ackermann, the inability to reach binding cross-border standards and insolvency systems is likely to lead domestic regulators to abandon trust in home/host regulatory arrangements, and encourage financial institutions to contract to their home turf. Should we support to Mr Ackermann’s recommendations? No. Read more