Monday, September 7, 2009
Global Financial Control through FSB
The G20 has asked Mr Draghi to draft guidelines to control bank executivesâ€™ bonuses as part of his overall mandate to write a plan to reshape the global financial system and avert future crises....? The Bank of International Settlements created Basel II, which is an accounting rule that required US banks in Nov 2007 to adjust the value of their marketable securities (such as mortgage-backed securities) to the â€œmarket priceâ€ of the security. When one particular bank did seek to sell some of these securities, they got bargain basement prices. Instantly, that meant that the hundreds of billions of dollars of these securities being held by banks around the world had to be marked down. BIS knew this would happen, why else let it happen and now tell us the financial system needs reshaping?