The United States and the European Union are establishing a series of new tools for ensuring financial control and preventing new financial crises. The EU is setting up a European Systemic Risk Board (ESRB) for macroprudential control and a European System of Financial Supervision (ESFS) for microprudential supervision. However, no financial early warning system can possibly function
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Urgent action to save the financial system is good, but current draft legislation is risky. ++ Congress should not rush into a decision but needs to concentrate on three things: quickly restoring financial stability with low cost, punishing those responsible, and addressing the cause of the crisis — the price collapse in the real-estate market. ++ The Treasury plan has major problems,
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