(1888PressRelease)
October 23, 2007 - Top investment bankers have called for reforms to restore investors' confidence - in response to issues highlighted by the ongoing credit crunch.
The Institute of International Finance (IIF) proposed a number of measures to address the problems and to act against a recurrence of the crisis.
Among the proposals were the introduction of a revamped risk management programme and a review of the role of off-balance sheet conduits and special investment vehicles used by banks.
Also mooted were better ways to value complex products and moves to examine the role of credit rating agencies to improve their transparency.
Joseph Ackermann, chairman of Deutsche Bank and the IIF, said: "It is now clear that a number of structural problems have raised issues that need to be addressed not only but primarily by the financial industry to follow through on the immediate corrective measures that many institutions have already started to implement."
Transparency of asset pricing is also of paramount importance if the proposed $75 billion mortgages securities superfund is to succeed, Mr Ackermann added.
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