Executive Summary
This report is going to discuss the current issues derived from financial institutions because of systematic risk factors and shady business interactions. In the Squam Lake Report, it is indicated that the largest concern is to agree on the proper figure or entity who will obtain the responsibility of systemic regulator for each country. A systemic regulator would collect information from financial institutions, analyze it, and report the potential risks that become apparent while reviewing these institutions to government agencies and other financial organizations. The purpose of creating the position of system regulator is to have a scheme in place that oversees the stability and health of all financial institutions. It will be discussed more in depth below the reasoning of why systemic regulations and financial regulations should be separated.
The Squam Lake Report was intended to set in place a long-term solution to Financial Regulation Reforms. Specifically, this meeting was held in order to try and fix some of the issues consequent from the Financial Crisis of 2008. A principal focus was to devise systemic regulatory organizations that are concentrated on the focus of overall health and stability of Financial Institutions world-wide. This concept was put in place because of the poor decisions made by players in the financial market like Lehman Brothers and Bear Stearns. These financial institutions weren’t abiding to the interest of the general public and made some immoral decisions that consequently were the reasons why these companies failed. These
