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09 Apr 2008
An International Monetary Fund report, warning the widening global turmoil from the credit crisis could cost $1trillion, concluded there was a ‘collective failure to appreciate the extent of the leverage taken on by a wide range of institutions and the associated risks of a disorderly unwinding’.
The report pinned the blame on reckless banks and their bosses, careless investors, lax regulators, rating agencies which lacked rigour and insufficiently austere central banks, according to The Times.
‘Private sector risk management, disclosure, financial sector supervision and regulation all lagged behind the rapid innovation and shifts in business models, leaving scope for excessive risk-taking, weak underwriting, and asset price inflation,’ the IMF report found.
Banks overestimated the extent to which, by offloading loans through both ‘off-balance sheet vehicles’, unpoliced by regulators, and by selling them on through securitisation, they could then also offload their risks.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
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