Although since March, international financial markets have shown significant improvement, after the stress peaks in October 2008 and February 2009, the need for caution still prevails. Expected volatility for the US equity (VIX index) was reduced by half in the past five months, although it still doubles pre-crisis levels. Something similar occurs with interbank market, corporate debt, and CDS spreads of US banks.
Given that institutions operate transnationally, there is a need to implement new regulations to level the playing field. Simultaneously, new regulations should be careful not to stifle credit recovery.