We also broadly agree with the narrative of the crisis offered in the report, which discusses, among other things, the role of subprime lending in the housing boom and bust; the structural weaknesses in the shadow banking system, including insufficient transparency and investor overreliance on rating agencies; inadequate risk management by many financial institutions; and a flawed regulatory framework that allowed some large financial firms to escape strong consolidated supervision and gave no regulator the mandate or powers needed to effectively evaluate and respond to risks to the financial system as a whole.
The euro is one of the principal currencies on the forex markets, and euro/US dollar trade is by far the most active trading segment. In addition, the euro has become a premier issuing currency. According to preliminary statistics, euro-denominated bonds accounted for some 45% of new issues in the year 1999, which is roughly the same market share as that of new USD-denominated bonds.