Image by B TalAnti-regulation, free marketers, this post is for you. If you are in favor of ratings agencies and hedge funds carrying on as is, this post is for you. If you are a banker or a trader happy with the previous incentive reward system, this post is for you. Bye, bye to the way things were and are now.
After a rocky and delayed started, the G7, then the G8 and the G20, and then multilaterals etc. all started to sing the same tune: there must be a new global financial architecture. Of course, there are divergent views on what that should be. And yes, it is true that the EU itself cannot find one voice on this matter.
But one thing is for sure - everyone agrees that what "was" will not "be"; what "was" does not work.
Somewhere not "here" and not "back there" but "elsewhere" will be found.
What that new "elsewhere" and "what will be" depends on
- What happens between now and the next meeting. Does the global economy deteriorate more. Does the global banking system fall further into decline? Are more financial scandals and Ponzi schemes exposed? etc.
- The willingness of the private parties to cooperate with the Governments and regulators to find a middle ground. It is wise for us to all remember that whether or not we like it, governments do have power to make and implement unilateral decisions. Dialogue between the regulated and the regulator for a middle ground is always my preferred modus operandi
Want to know what world leaders are thinking? Well the EU and the UK just met in a precursor meeting.
Read this BBC Article: EU Heads Back Financial Clampdown. Watch the video of Prime Minister Gordon Brown contained herein.
Between now and April is going to be very, very interesting. I'm keeping a close eye on this. Are you?