In the period immediately prior to 2008, the continuous saga of financial scandals involving high profile companies like Enron, Worldcom, Arthur Andersen, Tyco in USA; Ahold, Parmalat in Europe, Citi bank's activities in Europe and Japan, BNP Paribas are still fresh in one's memory. More recently, those involving J P Morgan, Standard Chartered, HSBC in the international arena serve as examples.
The second document we discussed is the final report on the effects of too-big-to-fail reforms, which updates the interim analysis, also in light of the experience of the pandemic. The key message, on which we concurred, remains that the ‘too-big-to-fail’ reforms for banks are working as intended, reducing moral hazard and systemic risk with no material side effects.