Sunday, 10 February 2008

The G-7 also pledged to act on the recommendations of the Financial Stability Forum of regulators, which yesterday proposed measures to prevent a repeat of the credit crisis.
Deutsche Bank AG Chief Executive Officer Josef Ackermann said Feb. 7 rating downgrades for bond insurers hurt by the subprime slump ``could be a tsunami-like event.''
Italy's Draghi, who drafted the report, said banks should publish more information about their losses and improve risk management.
The report also said authorities must address ``potential conflicts of interest'' at credit-rating companies and improve understanding of banks' off-balance sheet positions, according to the statement.
The G-7 asked the International Monetary Fund and the Basel, Switzerland-based Financial Stability Forum to report at the next meeting in April ``on their respective roles in identifying potential vulnerabilities and enhancing early warning capabilities,'' the statement said.



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