From the U.S. subprime mortgage crisis in the international financial crisis

From the U.S. subprime mortgage crisis in the international financial crisis, the world financial system and the whole of the economy since the great depression most serious trauma. The current financial crisis has demonstrated the "minimal supervision and supervision is not the best." The root cause of the crisis is inadequate supervision. In this context, international financial regulation presents some new development features in the following areas. G20 London Summit communiqu stated that all financial institutions, markets and instruments must be given appropriate supervision and management. The consensus in the United States and the Christian Louboutin financial regulatory reform programmes have been implemented. The Obama administration in June 2009 official presentation of the financial regulatory reform bill, the Senate passed, Obama in 2010 was signed on 21 July, Bill explains that the United States is developing a more complete and strict supervision system, under the Act, the supervision of the Horn almost reached into every corner of the area of finance, from the financial institution's operations, mergers and acquisitions, mortgage loan origination to the credit ratings, derivatives trading, etc, are included in the ranks of the regulation, in the Bill the Fed's supervisory role has a new location, it was an unprecedented expansion of the scope of regulation, regulation no longer confined to the Bank, but also to all the possible threat to the financial stability of the enterprise, such as hedge funds, insurance companies and other non-banking financial institutions; to cooperate with the US Federal Reserve Regulation.

The Act provides a new set of two institutions the financial stability Oversight Board and consumer financial protection agency, financial stability Monitoring Committee is responsible for monitoring processing system risks, the protection of consumers of financial services to provide a credit card, mortgage and consumer finance products and services, the supervision of financial institutions, in order to protect the interests of consumers. Supervision of the new law will restrict large speculative trading of financial institutions, in particular the strengthening of Christian Louboutin Shoes financial derivatives; Bank in the market for cross-business will be strictly limited. The United States also require reaches a certain size of hedge funds must be registered in the Securities and Exchange Commission to strengthen the regulation of hedge funds. The European Commission believes that the future need to strengthen the Bank's risk control, strengthen the supervision of credit rating agencies. For a long time, Europe and the United States the basic rules on financial supervision and regulation, adhere to the regulatory authorities to establish clear and detailed rules for financial institutions within the rules of that law does not prohibit generally feasible. But the financial crisis in history has shown that market changes often leading to regulators, financial innovation and financial supervision is always along the "innovation again then the track evolution and supervision", the lack of the necessary flexibility, behind the pace of innovation, and if the distance is too large, it is easy for the crisis.

As a result of inadequate supervision rules, the principle of supervision by the idea to get more attention. Recently, the United Kingdom introduced a principle-based supervision reform. Relative to the rules for rules and standards, process, product, the principles of supervision is a principle-driven, results-oriented manner. Principles of the regulatory model to help the UK to maintain a stable financial system. At present, many countries have begun to consider the principles into its system of regulation. Financial system, usually the systemic risk exists even if the individual agencies trying to control the degree of risk itself, but the overall risk is likely to exceed safety limits. In this case, once a risk, they will subvert the financial industry as a whole. From this financial crisis, the existing financial regulation Wedding Shoes only focus on micro-supervision, ignoring the systemic risks of the financial system. Macro-prudential supervision of large financial institutions are usually seen as a whole, and in real GDP to measure the risk of the entire financial system in order to avoid the negative effects of the financial institutions brought about by the impact of the entire financial system instability. United States-enhanced macro-prudential supervision is an important measure is to be raised systemic risks of large financial institutions. The EU has set up a European systemic risk board as an administrative departments, identification monitoring, early warning system for the entire financial system risk.

This financial crisis before the regulatory trends in Europe and is the central banks and supervisory authorities, which resulted in the familiar with the macro-economic situation of the Central Bank has no regulatory authority; whereas there is a regulatory authority and does not understand the macroeconomic situation, this situation is not conducive to macro-prudential supervision. Therefore, enhanced supervision strengthening of the Central Bank and the supervising authority of communication, co-operation, a new regulatory trends. European systemic risk Board one of the most important functions is to strengthen the central banks and regulators. The international financial crisis highlighted the cooperation of international financial regulation. With globalization, international trade and capital flows more freely; the Louboutin Sale introduction of electronic trading systems, has changed the traditional trade patterns.

From the U.S. subprime mortgage crisis in the international financial crisis

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