Wednesday, July 15, 2009

They may or may not be politically or selfishly motivated, but they agree with the Guptara plan for financial systemic risk oversight

This morning's Financial Times reports that a coalition of investors, analysts and ex-regulators makes proposals very similar to mine, regarding how best to monitor financial systemic risk (that is, the risk of global recession). See:

I have not seen the 39-page document prepared by the group. Apparently, FT has seen it.

The FT's summary is that the document calls for the creation of an independent body ("the Systemic Risk Oversight Regulator" - horrible name!)to police risks across the financial sector, with full-time staff led by a chairman and four members appointed by the president and confirmed by the Senate, accountable to Congress. William Donaldson, a co-chair with fellow former SEC head Arthur Levitt of the Investors’ Working Group, told the FT the new agency should have “carte blanche to go everywhere it wants . . . to find systemically weak areas within the system”.

All these are exactly in line with the proposals I made in the New York Times DealBook section on 30 June:

The earlier piece, also published by the DealBook section of the NYT, evaluating the Obama proposals as a whole, is at: Sphere: Related Content

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