FT: But just for a moment, if you could just be a Frenchman, rather than a European… JCT: I am proud to be a Frenchman and proud to be a European… FT: …just for a few moments. Sarkozy has been described even as a possible Thatcherite; too strong, perhaps, but do you expect some real changes in the first three, four months?
Securitisation, which was once considered to be a very useful financial innovation in enabling efficient transfer of risk – and I still think it is a very useful tool – was not handled properly as perverse incentives took over. There were also serious gaps in the regulatory and supervisory framework and philosophy.