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Financial Institutions and Organizations - Essay Example
Finance & Accounting
Pages 5 (1255 words)
In reviewing the financial events impacting the global economy over the past decade, it is clear that a new monitoring organization must be introduced, and that the monitoring should oversee the so-called “Guardians of Finance,” or marketing regulatory agencies (Barth, Caprio, and Levine)…
Based on this data, the authors outline the best possible way to proceed and make a series of recommendations to support their argument. The central recommendations of Barth, Caprio, and Levine are organized around five distinct characteristics. The authors assert that adherence to these required characteristics will prevent the kind of widespread crisis that has been unfolding across the world, and will impose a level of institutionalized guardianship that has been heretofore nonexistent. The first recommendation by the authors is that the authoritative institution and overseer of market regulatory agencies be “independent of short-run politics” (203). Clearly, an effective system of regulation will need to be enforced by a legitimate and separate institution that is still subject to accountability measures and inquiry by the public it serves. With massive corruption and greed being such a prominent factor in the economic collapse, this aspect of guardianship would enable a built-in protection for consumers, the financial sector, and the political sector alike. When there is a method for preventing unfair and inappropriate practices, all parties will benefit. Additionally, the requirement that the organization be free of political sway will allow a more consistent guardianship that is external to the ebb and flow of political events and party favoritism. ...
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