It is quite clear that we cannot have a global financial system with national regulation. It is equally clear that full global regulation is not now possible given national politics. There are thus two challenges facing us: (1) what improvements can we now make to increase international coordination; and (2) what are the key steps that need to be taken in order to achieve global regulation someday. The new Council on International Financial Regulation, which I co-chair with Michel Prada, and of which Howard Davies is a member, has been formed to address these challenges.
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