From the European Tribune:
German federal finance minister Peer Steinbrück has a plan. On Wednesday, he published an eight-point plan, to be presented at the G7 meeting of finance ministers…. No word about nationalisation, but definitely about new regulation. Condensed summary:
1. Obligation to keep innovative financial instruments on the balance sheet, and they must be supported with sufficient equity.
2. Bank liquidity cushions must be increased, and a minimum size must be set for them.
3. International standards should be created for greater personal liability for the financial market participants accountable (to prevent golden parachutes).
4. Incentive and remuneration schemes should be adjusted in the financial sector (Steinbrück links those to the insane push for high profit margins).
5. Closer coordination between FSF and IMF.
6. Detrimental short-selling should be temporarily banned by international agreement.
7. A ban on the securitization of 100% of lending risk (to make lenders aware of risk).
8. Enhance cooperation between national regulators.
Read it in its entirety.
Joe Gandelman is a former fulltime journalist who freelanced in India, Spain, Bangladesh and Cypress writing for publications such as the Christian Science Monitor and Newsweek. He also did radio reports from Madrid for NPR’s All Things Considered. He has worked on two U.S. newspapers and quit the news biz in 1990 to go into entertainment. He also has written for The Week and several online publications, did a column for Cagle Cartoons Syndicate and has appeared on CNN.