Speculative attacks on major currencies, in particular the Euro, demonstrate
that the shadow financial economy is back to ‘business as usual’. The FSB
was established by the G20 last year to prevent such irresponsible destruction
of real economic activity - yet despite claims to the contrary FSB progress
on re-regulating global finance has been slow, amounting only to a series of
reports and principles for future reform, but no concrete regulatory action. If
anything, the FSB’s reports reveal the extent to which governments and supervisory
authorities have lost control over global finance. The recent FSB/IMF
proposals to reform the Basel II Framework for banks and to introduce new
taxation on large financial institutions represent too little too late and fall far
short of the bold and ambitious action that is needed to deliver the necessary
change and quell the rising tide of public anger...

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