In the past week:
- Lord Turner spoke on successful regulatory reform: he stressed the most important aspects as higher capital and liquidity standards, measures to address the "too big to fail" problem and better macro-prudential analysis and policy tools. He said initiatives such as those on rewards for excessive risk taking, hedge funds and CRAs were important, but secondary. He said Basel III is central to future stability but is not the end of global regulatory reform. He said the new European Systemic Risk Board will be a vitally important element of Europe's response to the crisis and that the new European Supervisory Agencies must address the key deficiencies that led to the crisis and ensure that national supervisors enforce the European prudential rule book; and
- Hector Sants spoke on the role of culture and ethics: he looked at the importance of the management of financial institutions having and instilling the right culture. But he said there is a role for regulators in helping them by assessing what the outcomes of the right culture should be. He also talked about the regulator's role in ensuring incentive structures within firms generate a sense of long-term ownership.