New report blames regulatory failures for the financial crisisWASHINGTON, DC - The Congressional Oversight Panel, headed by Harvard University professor Elizabeth Warren, which is overseeing the Troubled Assets Relief Program (Tarp), will release a report today that highlights the regulatory failures leading to the current financial crisis.
The conclusion of the report, as reported by CNBC.com, which received a draft copy of the report, said: "The regulatory system not only failed to manage risk, but also failed to require disclosure of risk through sufficient transparency."
Echoing earlier proposals, the report recommends any future regulation should include better oversight of systemic risk, with one panel member advocating that the Federal Reserve take over the role of systemic regulator. Other recommendations include reducing the potential impact of 'too-big-to-fail' institutions; improved transparency through "better, more accurate credit ratings"; better regulation of consumer products, which would "curb excesses in mortgage lending"; and curbs on executive compensation structures that encourage excessive risk-taking.
Accounting rules, the securitisation of debt, short selling and plans to address the future of US financial architecture are also addressed in the report.
More on Risk Management
In this paper, we clarify the relationships among popular methods for pricing European options based on the Fourier expansion of the payoff function (iFT method) and the simlified trapezoid rule.We suggest...
We develop efficient fast Fourier transform algorithms for pricing and hedging discretely sampled variance products and volatility derivatives under additive processes (time-inhomogeneous Lévy processes)....
Observing prices of European put and call options, we calibrate exponential Lévy models nonparametrically. We discuss the efficient implementation of the spectral estimation procedures for Lévy models...
Sign up for Risk.net email alerts
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.