Brought to you by:

International regulators run the rule over global downturn

A fragile banking system, outsourced risk and sheer greed have been cited as some of the root causes of the global financial crisis at an international conference of regulators.

The International Organisation of Securities Commissions (IOSCO), an international policy forum for securities regulators, held its annual conference in Tel Aviv, Israel last week.

Goldman Sachs Chairman and CEO Lloyd Blankfein called for greater recognition of the “culture of risk management”, while Bank of Italy Governor Mario Draghi said some of the root causes lay in regulatory flaws.

Bank of Israel Governor Stanley Fischer praised the efforts of international central banks for their rapid response to the crisis. He said prudential regulation must be strengthened to eliminate “gaps and weaknesses”.

US Securities and Exchange Commission Chairman Mary Schapiro said eliminating excessive compensation of corporate leaders would “ultimately lead to long-term corporate health”.