From the July-August 2009 issue of Treasury & Risk magazine

Moving Toward Stability?

T&R: Why is this recession different?

Guldimann: This one was triggered by banking, on top of consumption excess. The global meltdown reveals two fundamental flaws in the evolution of our financial system: One is a short-term focus with an over-reliance on mark-to-market and modeling, while neglecting liquidity; the other, a regulatory framework and reporting practice that have not kept up with globalization and off-balance-sheet activities. Regulatory changes coming soon will be significant for financial institutions and have lasting effects on treasurers.


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