Advices of Trichet for financial crisis
More than a year of financial market disturbances kept the world on tenterhooks, after a long period of stability in 2007 became a turning point that financial markets will long remember - says the president of the European Central Bank Jean - Claude Trichet in an article for Financial Times. Central banks, supervisory authorities and governments around the world responded to the risk - and continue to meet in order to recover as soon as possible stability and conditions pleasant growth. The root of the crisis was widespread underestimation of risk - believes Trichet. Financial operators nedootseniha amount of risk they were taken.
In 2006 and early 2007 some politicians - among them, and Trichet - have already begun to say that market participants should prepare for a serious correction. Until middle of 2007 in the banking world kings model "created and distributed - Trichet says. This means that there are divisions between those who hold credit risk and those who supervise and manage.
Investors assume that those who created (financial products) along with it will carry out the necessary risk management. But there is no guarantee of that. They received the faith of the ability of rating agencies to assess risk instruments that were new to them.
Labels: Financial News
posted by Zoritza Petrova @ 12:19 AM
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