Regulatory Responses to the Risks Posed by the Internationalization of Financial Markets

GAO presented a paper analyzing the: (1) risks of the globalization of financial markets; and (2) regulatory responses to such risks in the banking sector and the securities markets. GAO noted that: (1) it was unclear who would bear the risk in the event of a major international financial crisis; and (2) while progress has been made to minimize risks in the banking sector, there was still considerable regulatory work needed in the securities market with respect to common standards.