Otmar Issing

Moral Hazard




Who is responsible?

News Home

Rolf Englund IntCom internetional

Home - Index - News - Krisen 1992 - EMU - Economics - Cataclysm - Wall Street Bubbles
US Dollar - Subprime - Houseprices

"Consider the insights gained during this crisis. "

Consider the insights gained during this crisis.
First, supervision has to focus on containing systemic risk rather than on avoiding individual bank defaults.
Second, early warning signals need to be backed up by reliable information on all financial markets, including derivatives.
Both aspects have been neglected in the past and continue to be neglected today.
Otmar Issing and Jan Krahnen, Financial Times, February 18 2009

The authors are members of the expert commission advising the German government on issues relating to financial crisis prevention.
Their latest report, New Financial Order: Recommendations by the Issing Commission, appeared in early February

Full text

It was the 1988 Basel Accord that first created the opportunity for regulatory arbitrage
whereby banks could shunt loans off the balance sheet.

John Plender, FT November 6 2007

Fråga till Bankinspektionens Stig Danielsson:
Varför stoppade ni inte den vansinniga utlåningen?
- Vi hade inte någon glaskula att titta i. Och vi hade blivit utskrattade.
- Det är svårt att vara olyckskorp när allt går som smort