In the words of Guillermo Ortiz, Governor of the Banco de Mexico, in August 2007: "This time it wasn't us". So the reforms that need to be implemented to reduce the frequency and depth of financial crises have to start at the center. The crisis has generated an explosion of reports recommending wide-ranging reforms of the financial system.
2 For a non-random example, the G30 report, Financial Reform: A Framework for Financial Stability, (January 2009) presents 18 recommendations, grouped under four headings: (i) "Gaps and weaknesses in the coverage of prudential regulation and supervision must be eliminated"; (ii) "The quality and effectiveness of prudential regulation and supervision must be improved"; 3 (iii) "Institutional policies and standards must be strengthened, with particular emphasis on standards for governance, risk management, capital, and liquidity"; and (iv) "Financial markets and products must be made more transparent, with better-aligned risk and prudential incentives.