CHATHAM, Mass. — Federal Reserve Board vice chairman Donald Kohn Friday said that the work of correcting “deficiencies” in the global financial system that led to the current crisis has only just begun.
Kohn, in remarks prepared for a Boston Federal Reserve Bank conference, said the deficiencies must be addressed on a “global basis,” adding that “the process of addressing the problems is still at an early stage.”
“Now that the crisis seems to be abating, we can better identify the causes of the crisis and work on finding the best solutions,” Kohn said.
“Deficiencies must be fixed on a global basis to forestall gaps and regulatory arbitrage that could undermine the effectiveness of regulation,” he said.
— Market News International