Comments on: Bankers Beware? http://www.globaleconomicgovernance.org/blog/2009/10/bankers-beware/ from the Global Economic Governance Programme at the University of Oxford Thu, 17 Jun 2010 04:32:39 +0200 http://wordpress.org/?v=2.9.2 hourly 1 By: Ngaire Woods http://www.globaleconomicgovernance.org/blog/2009/10/bankers-beware/comment-page-1/#comment-5329 Ngaire Woods Mon, 26 Oct 2009 12:55:07 +0000 http://www.globaleconomicgovernance.org/blog/?p=566#comment-5329 The focus on regulation by policy-makers does not mean they will act. Although more than $1 trillion has been spent paying for the recklessness of the financial sector in the UK alone: "the EU has never seen such a powerful, well-resourced onslaught of lobbying against regulation" Poul Nyrup Rasmussen argued at GEG last week. His view is that the financial sector must become the servant of the real economy, assisting growth and entreneurship. Instead we're being asked to leave the casino untouched and to continue to underwrite its most serious losses. The focus on regulation by policy-makers does not mean they will act. Although more than $1 trillion has been spent paying for the recklessness of the financial sector in the UK alone: “the EU has never seen such a powerful, well-resourced onslaught of lobbying against regulation” Poul Nyrup Rasmussen argued at GEG last week. His view is that the financial sector must become the servant of the real economy, assisting growth and entreneurship. Instead we’re being asked to leave the casino untouched and to continue to underwrite its most serious losses.

]]> By: Professor Steve Schifferes http://www.globaleconomicgovernance.org/blog/2009/10/bankers-beware/comment-page-1/#comment-5256 Professor Steve Schifferes Sun, 25 Oct 2009 18:56:26 +0000 http://www.globaleconomicgovernance.org/blog/?p=566#comment-5256 It should be obvious that the pace of financial globalisation has outrun the ability of national governments to regulate it. But the challenge of constructing a regime of international financial regulation, even remotely similar to the limited regulation in the world trade system, is going to be a huge task. The very success of the bail-out has reduced the political imperative for governments to agree to give up some of their sovereignty that a truely global regulatory regime would require. while the banks are now more confidedent and pressing to shape any regulatory system in their interests It should be obvious that the pace of financial globalisation has outrun the ability of national governments to regulate it. But the challenge of constructing a regime of international financial regulation, even remotely similar to the limited regulation in the world trade system, is going to be a huge task. The very success of the bail-out has reduced the political imperative for governments to agree to give up some of their sovereignty that a truely global regulatory regime would require. while the banks are now more confidedent and pressing to shape any regulatory system in their interests

]]> By: Usi Omondiagbe http://www.globaleconomicgovernance.org/blog/2009/10/bankers-beware/comment-page-1/#comment-5237 Usi Omondiagbe Sun, 25 Oct 2009 00:15:19 +0000 http://www.globaleconomicgovernance.org/blog/?p=566#comment-5237 In the aftermath of the latest global economic recession, too much focus has been shifting to banking regulation. As a result bankers are now reluctant to invest. This is not good for the global economy, as several businesses, both large and small, are feeling the impact. International trade has slowed down as a result of delayed or denied bank funding. This may result in a drastic drop in the availability of vital commodities, further resulting in inflation owing to high demand and low supply. Risk-taking is very essential in modern banking, but too much regulation will prevent financial executives from taking any risks, which will lead to a halt in global economic growth. In the aftermath of the latest global economic recession, too much focus has been shifting to banking regulation. As a result bankers are now reluctant to invest. This is not good for the global economy, as several businesses, both large and small, are feeling the impact. International trade has slowed down as a result of delayed or denied bank funding. This may result in a drastic drop in the availability of vital commodities, further resulting in inflation owing to high demand and low supply. Risk-taking is very essential in modern banking, but too much regulation will prevent financial executives from taking any risks, which will lead to a halt in global economic growth.

]]> By: Le Thanh FOrsberg http://www.globaleconomicgovernance.org/blog/2009/10/bankers-beware/comment-page-1/#comment-5206 Le Thanh FOrsberg Thu, 22 Oct 2009 13:54:57 +0000 http://www.globaleconomicgovernance.org/blog/?p=566#comment-5206 I was very impressed about his courage to stand up against powerful interest groups among politicians and bankers to demand on substantial reforms of the financial market. It is brave especially as he is among the minority group seeing the resurgences across Europe by conservative governments who may like to protect the interests of their bankers and financiers. I would also like to see his vision for a new global governance institution to be set up, something like Global Financial Organization that would provide a foundation for all member states to join and negotiate on regulations or rules of the game on the global financial market. However, I may not entirely support his call on building the existing IMF while a new global governance is not yet set up. IMF does not impress the developing world, at least in the case of Vietnam, as their interventions in the macroeconomic and monetary development are often superficial and more often with little impacts. It is only not always easy to interpret their role, which is sometimes directive at one time and discrete at other time when they want to be gentle to the government so that the government will buy their ideas and concessional packages. In short, if there are problems to know the behaviors of even the global regulators like the WB and IMF, how can we use them to regulate the individual players who are governments or private financiers. Before we can hold bankers and financiers accountable and transparent, the global regulators have to set example first. This should be bear in mind before creating any new global governance structure or reforming the existing ones. I was very impressed about his courage to stand up against powerful interest groups among politicians and bankers to demand on substantial reforms of the financial market. It is brave especially as he is among the minority group seeing the resurgences across Europe by conservative governments who may like to protect the interests of their bankers and financiers.

I would also like to see his vision for a new global governance institution to be set up, something like Global Financial Organization that would provide a foundation for all member states to join and negotiate on regulations or rules of the game on the global financial market. However, I may not entirely support his call on building the existing IMF while a new global governance is not yet set up. IMF does not impress the developing world, at least in the case of Vietnam, as their interventions in the macroeconomic and monetary development are often superficial and more often with little impacts. It is only not always easy to interpret their role, which is sometimes directive at one time and discrete at other time when they want to be gentle to the government so that the government will buy their ideas and concessional packages. In short, if there are problems to know the behaviors of even the global regulators like the WB and IMF, how can we use them to regulate the individual players who are governments or private financiers. Before we can hold bankers and financiers accountable and transparent, the global regulators have to set example first. This should be bear in mind before creating any new global governance structure or reforming the existing ones.

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