Investor and philanthropist George Soros, who earned billions taking advantage of the imperfections and inefficiencies of financial markets in the 1990s, called for a global regulatory body to regulate financial markets in order to skirt another financial disaster.
Globalization, he said, is based on the false premise that markets don’t need to be regulated and financial institutions can look after their own risks.
“That was a false idea but it was infectious because once the United States and United Kingdom started to deregulate, the rest of the world had to follow, otherwise the capital would have escaped from those countries and moved to where it was not regulated,” said Soros during a public discussion organized by The University of Hong Kong on February 3.
“Now we face a challenge because it is not just the question of restarting a system, but we actually have to create a new system building global regulations of financial markets and that requires international cooperation. The process involves working in reverse – it is not infectious – it is extremely difficult to get the national authorities to agree on a common standard.”
Read More: – By Gita Dhungana, The Asset