Sarkozy Backs 'Financial Interpol'

James Joyner | September 03, 2008

French President Nicolas Sarkozy hailed a new report from his government urging the creation of a "financial Interpol" to track down market abuse and fraud. He “shared the diagnosis of the reasons for the crisis and, in particular, the loss of both ethics and sense of risk at the heart of the financial community, as well as a grave failing by the rating agencies." The creation of a separate body devoted solely to financial crime was the highlight of "30 recommendations for tightening up regulation and surveillance of financial markets, focusing more on methods to speed up decision-making by EU government and international regulators rather than on fresh ideas." The others included linking bankers' pay to long term performance and various measures to enhance risk management.

Report author René Ricol told the Financial Times that, "There are things where it is not worth taking another six months to get 100 per cent right." Other themes would include linking bankers’ pay to longer-term performance, to curb procyclical effects on the market; extra temporary requirements on banks to provide quarterly information on their efforts to improve risk management; and a review of corporate governance rules to enhance risk management.