Banks' Powers in Spotlight as IMF Readies Report |
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June 3,2009
Top financial institutions could be held more accountable for the power they wield over world economies in possible new rules to prevent meltdowns like the one that triggered the global recession.
Top financial institutions could be held more accountable for the power they wield over world economies in possible new rules to prevent meltdowns like the one that triggered the global recession.
Laura Kodres, chief of the IMF's global financial stability division, told analysts in Toronto that the global lender was preparing a set of proposals on how to mitigate systemic risk in top financial institutions, and would submit its report to the G20 countries in November.
She made clear that the cost of capital might have to rise commensurate with the power that an individual institution wields, given that some of the world's most influential banks have considerable sway over one or more economies.
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