|
In light of the recent turmoil in global financial markets and criticisms of the performance of the regulatory system, Sir Howard Davies-who prior to his current appointment as Director of the London School of Economics was Chairman of the Financial Services Authority, the UK’s single financial regulator-gives a preliminary assessment of where there is a case for change in the rather complex global regulatory system. He identifies seven interesting and difficult questions for central banks and regulators concerning the financial markets upheaval: Did the Fed cause the problem? Is this a broader crisis of Anglo-Saxon capital markets? Is there a fundamental problem in the subprime mortgage market in the United States? Is there a fundamental problem with the credit ratings agencies? Do we need a new approach to liquidity? Is the UK’s regulatory system fundamentally flawed? Does the crisis reveal flaws in the international regulatory system? His answer to the latter question is a qualified yes. Improvements can be made, but the recent events have provided a vivid demonstration of the importance of a robust regulatory framework surrounding capital markets.
Howard Davies is Director of the London School of Economics and Political Science. Prior to his current appointment he was Chairman of the Financial Services Authority, the UK’s single financial regulator, in 1998. He had previously served for two years as Deputy Governor of the Bank of England after three years as Director General of the Confederation of British Industry. From 1987 to 1992 he was Controller of the Audit Commission. From 1982 to 1987 he worked for McKinsey & Company in London and during 1985-1986 was seconded to the Treasury as Special Adviser to the Chancellor of the Exchequer. He had previously worked at the Treasury and the Foreign and Commonwealth Office, including two years as Private Secretary to the British Ambassador in Paris. Since 2002 he has been a Trustee of the Tate. He is a member of the governing body, Royal Academy of Music; Patron of Working Families; and in 2004 was elected to an Honorary Fellowship at Merton College. In 2004 he joined the board of Morgan Stanley as a non-executive director. His latest book, with David Green, is "Global Financial Regulation: The Essential Guide" (Polity Press, March 2008).
|
