At least informally, financial regulation and supervision in the United States already include some macroprudential elements.
This would require a complete shift of banking regulation and supervision to the European level and the creation of a European bank resolution mechanism.
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These efforts include steps to improve corporate governance and banking practices, overhaul the legal frameworks, and strengthen prudential regulation and supervision of financial institutions.
And second, by prudential regulation and supervision to avoid certain excesses.
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Wave after wave of bank failures there have forced governments to tighten regulation and supervision, to privatise unwieldy state banks and to open once-pampered institutions to competition.
In contrast, securities regulation and supervision across Europe are chaotic.
If there is ever an opportunity to get a more uniform approach internationally on some critical issues or regulation and supervision, it is now, in the aftermath of this crisis.
In my view, making the systemic risk rationale for guidances and reviews more explicit is certainly feasible and would be a useful step toward a more systemic orientation for financial regulation and supervision.
IMF, in the most recent of its periodic reports on Switzerland's financial sector, said that Swiss anti-money-laundering measures met the highest international standards, and that the sector's regulation and supervision were effective and solid.
Politically, a Europeanization of the banking sector would also require countries to give up sovereignty, but in the area of banking regulation and supervision, which is rather technocratic and more remote from day-to-day concerns of ordinary citizens.
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These issues include the state of the global economy, implementing the framework agreement for strong, sustainable and balanced growth, facilitating job creation, reforming the currency and financial regulation and supervision systems, stability on global energy markets, stimulating international development, strengthening multilateral trade, and countering corruption.
Closely related to this third group of activities is a critical question that we as a country now face: how to strengthen our financial system, including our system of financial regulation and supervision, to reduce the frequency and severity of bouts of financial instability in the future.
In this environment, regulation and supervision didn't quite wither away, but it's fair to say they lost support and lost potency, partly as a matter of ideology but partly because the banks that were the most heavily regulated lost relative importance in the market so there was overall less regulation.
They will oversee the writing of new EU rules on financial supervision and regulation.
Even if the easy mistakes are avoided, improving supervision and regulation is hard.
Market forces and models are useful tools but strong supervision and regulation should always be in the first line of defense in protecting our financial system.
In the wake of this crisis, Hoeing said we did the same things we did after previous crises: added supervision and regulation and raised capital requirements.
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This is why enhanced supervision and regulation of shadow banking will be one of the top priorities for the Financial Stability Board in the coming months.
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Mr. ROGER COLE (Director, Federal Reserve's Division of Banking Supervision and Regulation): I will say that given what we know now, yes, we could have done more sooner.
There is central supervision and regulation of eurozone banks, to stop them behaving in the way that those in Ireland, Spain and Cyprus did - or so recklessly that they come close to bankrupting the state.
In a draft letter, to congressional leaders, the Treasury said that "all (over-the-counter) derivatives dealers and all other firms whose activities in those markets create large exposures to counterparties should be subject to a robust regime of prudential supervision and regulation".
The bubble and the bust had many causes, including cheap money, outdated regulation, government distortions and poor supervision.
As our special report this week lays out, today's bust and the bubble that preceded it had several causes besides dodgy lending, including a tide of cheap money from emerging economies, outdated regulation, government distortions and poor supervision.
Goldman Sachs and Morgan Stanley separately said they anticipate a new global regulation from the Basel Committee on Banking Supervision that requires they disclose aggregate dollar amounts clawed back in a given year.
The first is financial: the euro zone needs a region-wide system of bank supervision, recapitalisation, deposit insurance and regulation.
The Fed's information-sharing agreement with the Securities and Exchange Commission is not enough, and Geithner did not believe direct regulation of hedge funds is practical, but tighter supervision of the amount of risk taken on by lending to hedge funds could help prevent excessive leverage.
The two regulators, which for decades have served as Wall Street's top cops with the supervision of the SEC, would significantly reduce the costs of regulation to member firms, the two contend, and reduce burdensome redundancies in how examinations and other routine regulatory functions are conducted.
Until Congress acts, the Obama administration must renew its commitment to urgent reform of the detention system by closing the most egregious detention facilities, aggressively working with nongovernmental organizations to promote community-based supervision programs for those in proceedings, and pushing for legal regulation and third party oversight of the remaining detention centers.
Pressure is now coming from within the BOE: Its Court has ordered a much-needed review into its liquidity operations while Andrew Bailey, executive director for banking supervision, last week broke ranks to warn publicly of the risks of over-cautious regulation to the wider economy.
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