This link has been bookmarked by 3 people . It was first bookmarked on 09 Apr 2008, by Zhuu Ming Ang.
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10 Apr 08
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The world’s leading banks on Wednesday publicly accepted much of the blame for the credit crisis in an attempt to stave off calls for more regulation, even as the International Monetary Fund slashed its estimates for global growth and warned that the US would suffer a recession.
The Institute of International Finance, representing more than 375 of the world’s largest financial companies, acknowledged “major points of weaknesses in business practices”, including bankers’ pay and the management of risk.
But it said it would be “completely wrong” for the authorities to impose much greater regulation on the industry.
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09 Apr 08
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“We think it would be completely wrong to jump to some premature regulatory measures,” Josef Ackermann, chief executive of Deutsche Bank and chairman of the IIF board said, adding, “we want to demonstrate we can do a better job within the industry”.
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The IIF report detailed banks’ failings in managing risks, conflicts of interest over bankers’ pay, over-reliance on models, and inadequate protection against liquidity shortages. It also pointed to failures in credit ratings agencies and the dangers of mark-to-market accounting at times of illiquidity in creating a vicious circle of forced asset sales, lower prices, further writedowns and more asset sales.
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