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

From the U.S. subprime mortgage crisis in theBut the financial crisis in history has shown that
international financial crisis, the world financial systemmarket changes often leading to regulators, financial
and the whole of the economy since the greatinnovation and financial supervision is always along the
depression most serious trauma. The current financial"innovation again then the track evolution and
crisis has demonstrated the "minimal supervision andsupervision", the lack of the necessary flexibility,
supervision is not the best." The root cause of thebehind the pace of innovation, and if the distance is
crisis is inadequate supervision. In this context,too large, it is easy for the crisis.
international financial regulation presents some newAs a result of inadequate supervision rules, the
development features in the following areas. G20principle of supervision by the idea to get more
London Summit communiqué stated that all financialattention. Recently, the United Kingdom introduced a
institutions, markets and instruments must be givenprinciple-based supervision reform. Relative to the
appropriate supervision and management. Therules for rules and standards, process, product, the
consensus in the United States and the Christianprinciples of supervision is a principle-driven,
Louboutin financial regulatory reform programmesresults-oriented manner. Principles of the regulatory
have been implemented. The Obama administration inmodel to help the UK to maintain a stable financial
June 2009 official presentation of the financialsystem. At present, many countries have begun to
regulatory reform bill, the Senate passed, Obama inconsider the principles into its system of regulation.
2010 was signed on 21 July, Bill explains that theFinancial system, usually the systemic risk exists even
United States is developing a more complete andif the individual agencies trying to control the degree
strict supervision system, under the Act, theof risk itself, but the overall risk is likely to exceed
supervision of the Horn almost reached into everysafety limits. In this case, once a risk, they will
corner of the area of finance, from the financialsubvert the financial industry as a whole. From this
institution's operations, mergers and acquisitions,financial crisis, the existing financial regulation Wedding
mortgage loan origination to the credit ratings,Shoes only focus on micro-supervision, ignoring the
derivatives trading, etc, are included in the ranks ofsystemic risks of the financial system.
the regulation, in the Bill the Fed's supervisory role hasMacro-prudential supervision of large financial
a new location, it was an unprecedented expansioninstitutions are usually seen as a whole, and in real
of the scope of regulation, regulation no longerGDP to measure the risk of the entire financial
confined to the Bank, but also to all the possiblesystem in order to avoid the negative effects of the
threat to the financial stability of the enterprise, suchfinancial institutions brought about by the impact of
as hedge funds, insurance companies and otherthe entire financial system instability. United
non-banking financial institutions; to cooperate withStates-enhanced macro-prudential supervision is an
the US Federal Reserve Regulation.important measure is to be raised systemic risks of
The Act provides a new set of two institutions thelarge financial institutions. The EU has set up a
financial stability Oversight Board and consumerEuropean systemic risk board as an administrative
financial protection agency, financial stability Monitoringdepartments, identification monitoring, early warning
Committee is responsible for monitoring processingsystem for the entire financial system risk.
system risks, the protection of consumers of financialThis financial crisis before the regulatory trends in
services to provide a credit card, mortgage andEurope and is the central banks and supervisory
consumer finance products and services, theauthorities, which resulted in the familiar with the
supervision of financial institutions, in order to protectmacro-economic situation of the Central Bank has no
the interests of consumers. Supervision of the newregulatory authority; whereas there is a regulatory
law will restrict large speculative trading of financialauthority and does not understand the
institutions, in particular the strengthening of Christianmacroeconomic situation, this situation is not
Louboutin Shoes financial derivatives; Bank in theconducive to macro-prudential supervision. Therefore,
market for cross-business will be strictly limited. Theenhanced supervision strengthening of the Central
United States also require reaches a certain size ofBank and the supervising authority of communication,
hedge funds must be registered in the Securities andco-operation, a new regulatory trends. European
Exchange Commission to strengthen the regulation ofsystemic risk Board one of the most important
hedge funds. The European Commission believes thatfunctions is to strengthen the central banks and
the future need to strengthen the Bank's risk control,regulators. The international financial crisis highlighted
strengthen the supervision of credit rating agencies.the cooperation of international financial regulation.
For a long time, Europe and the United States theWith globalization, international trade and capital flows
basic rules on financial supervision and regulation,more freely; the Louboutin Sale introduction of
adhere to the regulatory authorities to establish clearelectronic trading systems, has changed the
and detailed rules for financial institutions within thetraditional trade patterns.
rules of that law does not prohibit generally feasible.