Posted on 10/06/2008 1:21:54 PM PDT by hedgetrimmer
An international lobby group for bankers is calling on the world's policymakers to put their taxpayers' funds to work to save the global financial system.
In a policy letter sent Thursday from the Institute of International Finance Inc. to the finance ministers and central bank governors that are meeting in Washington D.C. next week at the International Monetary and Financial Committee, the group called for the passage of proposed U.S. bill to bailout troubled mortgage-backed securities.
“Systemic, internationally co-ordinated responses by the authorities are essential at this stage to stabilize financial markets, requiring large if temporary use of government funds,” says Charles Dallara, managing director of the IIF. “Still more needs to be done to set global financial markets on a path toward stability and recovery, including bold, pre-emptive actions by European authorities.”
The IIF says that governments, central banks and regulators need to continue their efforts to restore the normal functioning of the critical interbank and money markets. Additionally, it says that both U.S. and European authorities need to formulate frameworks for bank resolution and recapitalization. Financial firms need to raise additional capital and strengthen their business practices. And, finally, that macroeconomic policies need to be supportive of the immediate goal of stabilizing markets.
The IIF emphasized that, where absolutely necessary to preserve systemic stability, government capital should be temporarily injected. And, it said that to attract private capital, some preference should be given to new investors, including long-term investors such as pension funds and Sovereign Wealth Funds.
Dallara also says the crisis underscores the need for regulatory reform. Gaps in the regulation of mortgage lending require immediate action, and reinvented techniques for supervision of large, complex and internationally active institutions may well be needed. The focus should be on more efficient and more globally coordinated supervision, he said.
Additionally, Dallara advocates the establishment of a new global regulatory co-ordinating body “mandated to monitor and co-ordinate financial regulation and supervision on an internationally consistent and convergent basis, for systemically important firms. In that connection, the need for a globally consistent framework for insurance regulation also requires attention.”
In order to guard against future crises, the IIF will also launch a Market Monitoring Group designed to detect the emergence of vulnerabilities with systemic implications, and to identify developments that could lead to major system-wide strains.
He is also calling on the Financial Stability Forum to initiate a high-level dialogue to examine issues relating to Fair Value accounting, including ways to mitigate unintended procyclical effects, while reinforcing investor confidence and accelerating convergence between different accounting standards. And he is calling on the IMFC to consider a series of additional actions, including: strengthening the global consistency and efficiency of regulatory policies; structural reforms to address distortions in the markets for energy and agricultural products, as well as to improve the flexibility of labor and product markets; and, institutions and mechanisms for multilateral cooperation need to address the current challenges without succumbing to the forces of disintegration and nationalism.
You may be interested in this.
Capitalism is crap and destined to destroy itself. In the end, only government intervention can save us all.
It's nice to see the that the world's most avid capitalists (at least in the good times) have now come to their senses and are demanding that the state come to our rescue.
I guess a capitalist is really just a socialist who hasn't gone broke yet.
You said — “I guess a capitalist is really just a socialist who hasn’t gone broke yet.”
Hmmm..., that sounds about right... LOL...
Global buy-out?
GREAT idea.
GO talk to the Saudis.
Well, here comes what the Bible was talking about, in that the “one-world leader” will use the global, financial system to his own ends. We see the “infrastructure” being prepared to be built, right now to put the U.S. and other nations under control of that one-world financial authority that the one-world leader will take control over. It is coming about just as the Bible talks about...
There, fixed it!!
Just wonder where all the Liberal Free Trade Globalists are hiding?
They are usually on here bestowing the values of doing stuff like trading with Commie China, and other nefarious wealth-redistribution schemes.
The Globalists have long been the Staged Moon Landing crowd...denying all the concerns and criticisms of Globalism.
Now the Globalists want a bailout. They should be sent a big middle finger, not one American cent
The IIF says, in the link, the action of creating this, is needed.
“Institutions and mechanisms for multilateral cooperation need to address the challenges of the 21st century while positioning the global economy to move through this difficult adjustment phase without succumbing to the forces of disintegration and nationalism.”
Note that nationalism is an anathema to these globalist groups. Nations get in the way of globalism, doncha know.
Its awfully funny how this group has called for a bailout and got it, when 70% of citizens polled didn’t want it.
Also notice that the group wants a centrally controlled command economy.
Take care to see that the group thinks a nation favoring its own people is a problem that has to be mitigated on the creation of the global body to control the word’s economies.
“free trade” is the tool for global socialism. It began the work of eliminating “nationalism” in trade, and now they are eliminating “nationalism” with respect to our taxes.
Absence of evidence is not evidence of absence. Suprising how many FReepers have never figured it out. As if you think the rest of us will drop everything we're doing because someone discovered a lobbying group looking for a federal handout. That's some real revolutionary stuff. Never seen it before, no sir.
You said — “Its awfully funny how this group has called for a bailout and got it, when 70% of citizens polled didn’t want it.”
I’m listening to McCain’s speech in New Mexico (the latest speech) and McCain severely criticizes Obama for not supporting the Bailout — saying that “he” (i.e., McCain) worked to actively support it.
That’s probably why it went through — because McCain supporters obviously have to support what their candidate supports...
They are looking for the federal government to hand control over to a global body. Legislators did in fact build a mechanism to do so in the fraudulent ‘bailout’. You know that global socialism has been the goal of these internationalist bodies all along. With the US taxpayer funding every step, as I have pointed out many many times.
We have been seeing the global Financial Stability Forum in the news frequently. Now we have an assistant secretary for Financial Stability.
Pretty soon, our tax money is going to be completely controlled by these global ‘finance’ groups because they need it to ‘bail out’ the world’s economies.
Check out G30, Paul Volcker the FSF and the IIF on the internet to see where the ‘bailout’ is taking us.
“The focus should be on more efficient and more globally coordinated supervision, he said.”
Oh, yeah!! We need more of that!
Did I tell you I’ve become a full fledged Isolationist?
It’s time to start putting this country first, that’s for sure!
Can you say: slave labor-that’s what we are because central bankers controll our currency!
They control our currency and they can take taxes on our wages and give them to anyone in the world now.
How many people have even heard of these groups? Taxation without representation!
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