There is clear need for a requirement that large financial institutions have minimum amounts of long-term unsecured debt that could be converted to equity and thereby be available to absorb losses in the event of insolvency. Although the details will, as always, be important, there appears to be an emerging consensus among regulators, both here and abroad, in support of the general idea.
In the 1990’s, when you were head of the research department at the Banco de Mexico, Mexico went through the so called Tequila-crisis, when it encountered difficulties in financing its large current account deficits. And in 2008, as Mexico’s Minister of Finance, you helped to coordinate an international response to global financial crisis in the G20.