Council statement on financial market turmoil

20 October 2007

In a statement to the IMFC Autumn 2007 meeting Chairman of the EU Council of Economic and Finance Ministers Mr dos Santos said that the recent disturbance may reflect a healthy correction towards a sounder pricing of risk, but do also raise questions to the proper functioning of some markets and to the assessment of risk transmission channels.

 

Dos Santos announced that EU Finance Ministers and Governors gave a mandate to its Economic and Financial Committee to review alongside our international partners how to further improve transparency of complex financial instruments, of institutions and vehicles as well as how to improve valuation processes, risk management and liquidity stress testing. They will also take a closer took at the role of rating agencies in structured finance.

 

© Graham Bishop