BIS: "Central banks may need more power for financial stability"

FRANKFURT (Reuters) - Central banks might need more power to oversee banks if they are to play a larger role in maintaining financial stability in the post-crisis world, a Bank for International Settlements (BIS) report said on Sunday.

"The current global financial crisis could well have ... important implications for central banks, particularly with respect to their role in fostering financial stability," said the report, by the Central Bank Governance group.

"If central banks are to play a key role in dealing with systemic risk when applying a more macroprudential approach, they may also need to have closer oversight of systemically significant institutions."

Reuters

See here the end-goal of this spontaneously erupted financial crisis no body could have seen coming ( ), right out of the horses mounth, BIS. Wich is the central banks central bank, pretty high up yeah.

More information on BIS:
globalresearch.ca...
www.bibliotecapleyades.net...

[edit on 20-5-2009 by Harman]

[edit on 20-5-2009 by Harman]

Indeed, the BIS is supposed to be in charge of overseeing
the flow of payments of all the Trillions in OTC derivatives,
swaps etc.

I guess even 'They' want to pass on more authority to the Central Banks,
as the (est) $592 Trillion of the wide ranging derivatives, presently existing in the OTC Derivatives Universe.

but the Obama administration says;

The Obama administration announced proposals last week to expand regulation of derivatives, which have been blamed for contributing to the failures of Lehman Brothers and American International Group Inc., leading to the seizure of credit markets and causing more than $1.4 trillion in losses and writedowns by financial companies.

If changes are not made “we will be haunted by our failure for years to come,” Brooksley Born, the former U.S. official who lost the fight to regulate derivatives a decade ago, said yesterday as she accepted a Profiles in Courage award from the John F. Kennedy Library.

www.bloomberg.com...



? Musical Chairs ?

St. Udio

read Christopher Whalen's "Kabuki on the Potomac" to get a likely scenario of of how this "reformed OTC dervivatives market" is being constructed with the high powered lawyers of JMP (and lobbyists too) ....so that the same institutions will have the same moral hazard's ....and the same EZ profits at the expense of economic instability...however now because of the crisis ...it will be more dressed up with "change is here" "reform that was needed"...maybe even the necessary banker shouting "this plan is unfair to us." in order to SELL the public that something right has been done........unfortunately that will all be a charade of lies , greed, and public ignorance

us1.institutionalriskanalytics.com...

[edit on 20-5-2009 by cpdaman]

what the BIS means when they say "central bank may need more power for financial stability" is


Central banks will need more power and leverage to extract productivity from the real economy in times of financial fault ...eh crisis...... to maintain the higher standard's of living for it's insiders and established investment class

[edit on 20-5-2009 by cpdaman]