Almost by definition, the synergies upon which centralized management is predicated imply that neither a subsidiary’s economic condition on a going-concern basis nor its exposure to potential risks can be evaluated independently of the condition and management policies of the consolidated organization. Regulation must fit the architecture of what is being regulated.
Models used by IMF – Could not predict spillovers before crisis •  So far research within and outside IMF has been focussed on trying to understand linkages through trade, finance and confidence channels. It is not clear that we have a clear understanding of the spillovers through these channels.