World Globalization of the Banking and Regulatory Structure
European Central Bank President Jean-Claude Trichet said Sunday the Financial Stability Board should be the cornerstone of governance in the global economy.
“The G20 [Group of 20] is an essential element, but there is an entity which is very important, the FSB, because one can find there the global point of reference for regulation,” Trichet told an economist conference in southern France. “That’s where the true coordination of regulation takes place.”
Trichet said the current economic crisis has proved the global market economy is “fragile,” and a global form of governance is necessary.