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There is wide agreement that markets need more effective monitoring and regulation, and stronger corporate governance, Angel Gurría, Secretary-General of the OECD said. “Market’s invisible hand had gone astray”, he said underlining that also the “regulatory structure was simply unable to deal with the likes of mortgage-based securities, derivatives and credit-default swaps.”
In the longer term, reforms in regulatory and accounting standards, lending practices and corporate governance need to be addressed and the global economic governance infrastructure should be rethought, he said.
Recalling the OECD Principles of Corporate Governance Gurria called for a more holistic culture of risk management and compensation issues, and called for policy measures to restore economic growth.