A few choice regulatory quotes

There was a great panel session at the IPS payments show this week on the future of regulation.  Here are a few choice quotes:

“This is the G20-isation of regulations.”
Philippe Mongars of the Banque de France

“By the end of 2010, there will be an agreement of a new macroprudential supervisory structure by the G20 ... the main focus areas will be in strengthening bank capital, strengthening risk management, introducing liquidity standards , mitigating cyclicality and ensuring improvements in governance.”
Shunsuke Shirakawa of the Japanese Financial Services Authority

“We have experienced a once in a century financial crisis twice in the last few years: one generated by domestic issues and one that is global in origin.”
Shunsuke Shirakawa, the Japanese Financial Services Authority

“The immediate crisis has gone and not a lot has happened in the regulatory structures yet ... but the level of cooperation (between supervisors) has been unprecedented. We will get a set of rules as a result, and then the question will be whether everyone applies those rules with the same rigour. This is why the European Union has created a supranational structure to check that the new regulations are followed consistently within the EU (this is CEBS, ESMA and CIOPS).”
Sir John Gieve, former Deputy Governor of the Bank of England

“Banks will require more capital and it must be real capital, as in equity capital.”
Sir John Gieve, former Deputy Governor of the Bank of England

“From a payments viewpoint, the main issue will be the loss of profits due to the loss of the leveraged model of trading. Most profitability in the past years has been as a result of bank leverage. That loss of profit stream will create a much greater focus upon costs, which will lead to outsourcing and other cost reducing programs, as banks need to find new ways to generate profitability.”
Sir John Gieve, former Deputy Governor of the Bank of England

“The book ‘Too Big To Fail’, which provides the inside track on the collapse of Lehman Brothers, has over 500 pages. Some call it ‘Too Big To Read’. The UK authorities first appear on about page 380 and then disappear on page 383, and yet we get the blame for the crisis!”
Sir John Gieve, former Deputy Governor of the Bank of England