The Managing Director of IMF, Christine Lagarde, was addressing the Canadian International Council in Toronto when she pushed world leaders to “do whatever it takes” for the sake of rebuilding the world’s financial system. She informed that the world’s financial system is still on the road to recovery from the devastating financial crisis of 2007-2009 and has now been further destabilized even more by the recent euro zone debt crisis.
She announced that global financial crisis has impelled a new revamping of the regulations in roughly every aspect of the financial system ranging from over-the-counter derivatives to bank capital requirements. Furthermore, Lagarde complained that there are numerous influential industrial group which are providing friction in the execution of such new rules. She told that “there are many vested interests working against change and push-back is intensifying.”
Lagarde shared with the Canadian International Council that “It is interesting how some banks say the new regulations will be too burdensome, but then spend hundreds of millions of dollars lobbying to kill them.” Lagarde claimed that development is required in all financial institutions that are considered as too big to fail and she asked the regulators to organize and line up their rules. She stated that “most countries have committed to adopt some or all of the new regulations, and some have moved further ahead with their own national policies.” She mentioned that “the challenge now is to proceed to the end of the reform path all together.”
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