The crisis revealed that even sophisticated investors and banks, supposed experts in assessing financial risks, too, often took the shortcut of outsourcing their risk-assessments to credit rating agencies. The regulatory endorsement of external ratings, as in the capital framework, played an important role in this failing.
On alternative investment vehicles, the G20 has called for greater oversight and in a number of jurisdictions, including the EU and the US, regulatory measures are under discussion. In this domain, too, I would call for a true level playing field at the global level and, in particular, a full convergence of the concept of oversight on both sides of the Atlantic.