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Filippo Cardone Home - About Filippo Cardone The nation’s largest financial firms,already highly leveraged, became increasingly dependent on unstable sources of shortterm funding. In many cases, weaknesses in firms’ risk-management systems left them
unaware of the aggregate risk exposures on and off their balance sheets. A credit boom accompanied a housing bubble. Taking access to short-term credit for granted, firms did not plan for the potential demands on their liquidity during a crisis. When asset prices started to fall and market liquidity froze, firms were forced to pull back from lending,limiting credit for households and businesses.Our supervisory framework was not equipped to handle a crisis of this magnitude.

Filippo Cardone Offerts Accrual accounting: Expenses and revenue are matched, providing a company with a better idea of how much it's spending to operate each month and how much profit it's making. Expenses are recorded (or accrued) in the month incurred, even if the cash isn't paid out until the next month. Revenues are recorded in the month the project is complete or the product is shipped, even if the company hasn't yet received the cash from the customer.

We will use our leadership position in the international community to promote initiatives compatible with the domestic regulatory reforms
described in this report.We will focus on reaching international consensus on four core issues: regulatory capital standards; oversight of global financial markets; supervision of internationally active financial firms; and crisis prevention and management.

Filippo Cardone Blog The financial crisis highlighted the need for an ongoing mechanism for cross-border information sharing and collaboration among international regulators of significant global financial institutions.The current financial crisis has affected banks and nonbank financial firms without regard to their legal structure, domicile, or location of customers. Many of the ailing financial institutions are large, have complex internal structures and activities, and operate in multiple nations. The global financial system is more interconnected than it has ever been. Curr ently, neither a common procedure nor a complete understanding exists of how countries can intervene in the failure of a large financial firm and how those actions might interact with resolution efforts of other countries.

This distribution of risk was widelyperceived to reduce systemic risk, to promote efficiency, and to contribute to a better allocation of resources.However, instead of appropriately distributing risks, this process often concentrated risk in opaque and complex ways. Innovations occurred too rapidly for many financial institutions’ risk management systems; for the market infrastructure, which consists of payment, clearing and settlement systems; and for the nation’s financial supervisors.Securitization, by breaking down the traditional relationship between borrowers and lenders, created conflicts of interest that market discipline failed to correct.


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