First, experience has shown that penalising banks, and even letting them fail, is not necessarily the best way to make the financial markets work better and assess risk appropriately. Markets remain fundamentally pro-cyclical, and punishing them for past  1  4  Cut-off date: 14 October 2011.
One necessary complementary measure is the regulation of legitimate entities within the market that is currently called the gray market, and removing illegitimate entities from this market. Such entities should be put under a regulatory framework with all that that entails – in other words, a regulatory, a system of laws and directives, supervisory and enforcement authorities, and so forth.