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National Suspicions Undermine Global Financial Cooperation
Article

National Suspicions Undermine Global Financial Cooperation

Douglas J. Elliott
Brookings Institution Press, 2013
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Editorial Rating

6

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Recommendation

This brief article offers valuable criticism of world leaders who are backtracking on their promises to repair and improve the financial system via cooperation. Douglas J. Elliott, a former investment banker, explains how nations are looking out for their own interests instead of collaborating to ensure reforms and rules attain a high standard. He highlights the risk of complacency now that the immediate danger of a total financial meltdown has passed. Though it is somewhat vague on details, getAbstract recommends this compact appraisal of the lack of international cooperation in financial regulation to policy makers and investors.

Summary

Despite the need to create a global collaborative financial system in the aftermath of the 2007-2009 financial crisis, suspicious nations wish to protect their own short-term interests. Their lack of cooperation is hindering efforts to ensure that global financial institutions and markets operate efficiently. The Basel Committee improved on previous accords and unveiled Basel III, a new “global rulebook” to govern banks on liquidity and capital levels. Yet the committee has split into two groups: The US, the UK and others want to ensure that...

About the Author

Douglas J. Elliott was an investment banker for twenty years. He is now a fellow of economic studies at the Brookings Institution.

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