Are we headed for: Basel 5, SOX v10, Solvency 8, Super RAROC, Extreme IFRS?
This was selected as Best Answer Hi Yasar, It hard to single out one reason, but there are chain of factors that has caused financial meltdown, derivatives trading may not end but complaince of Sanadard Operating Procedure, Better Risk Management, Creditability of Rating Agencies and Basel 5 or any other number has to be strictly followed. This is just the beginning of global financial crisis. Catastrophe cannot be prevented by taking actions just before it’s about to occur. Bailout could only help in delaying the catastrophe, it sends wrong message to the Wall Street and encourages in their wrongdoings. I do not think that the bailout would solve the market fundamentals. It only helps in injecting the liquidity into the financial sector. I think USD 3 to 4 Trillion Cash Injection is required to calm the market. Most of the injection is against borrowed money, so how can borrowed money solve the problem. The cost of fund is also gradually going to rise and printing of money would see s
