Global financial services reform since the 2007 crisis- job done, or significant risks still ahead?
It is now nearly 9 years since the onset of the global financial crisis in the summer of 2007 and the economic and political effects of it are still being felt. Global economic growth has not returned to its long term trend; unemployment and overcapacity remains high, particularly in the European Union and now markets appear to be entering another volatile period including very large capital outflows from emerging market countries. A central policy question to ask is whether the sum of the global financial repair reforms that have been made since 2007 have indeed reduced, sustainably, global systemic risk and set sound foundations for long term recovery. Or are there still a swathe of unfinished financial and structural reforms putting at risk global financial stability? If so, what are they and what are the possible contagion channels? Should the global regulatory community be confident that its level of comprehension of global financial stocks and flows is now sufficient to manage and anticipate future crises? And have the major financial firms changed their behavior for the better?
David Wright joined IOSCO in March 2012 after 34 years at the European Commission (EC). From March 2000 to October 2010, he was Director and then Deputy Director-General for Securities and Financial Markets at the EC, before assuming responsibility for financial services policy at the DG Internal Market and Services. He worked on the Financial Services Action Plans to integrate the EU's capital and financial services markets, and was the rapporteur for the Lamfalussy (2000/1) and De LaRosière (2008/9) committees. David chaired the securities and banking committees and represented the European Commission in various FSB/G20 fora. In this period, he also participated actively in the EU-US financial markets dialogue. He studied politics, economics and philosophy at Worcester College, Oxford, and was a visiting fellow at St Antony's College, Oxford from 2010 – 2012.